Plant January/February 2013

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Volume 72, No. 01 January/February 2013

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HIGH GEAR

Automotive industry is pressing the accelerator

We’re losing the Camaro but gaining a hybrid Lexus

PM 40069240

NEW TECHNOLOGY SECTION

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HIGHLIGHTS Agrisoma biofuel takes flight ArcelorMittal mines mobile asset values Process improvements protect your bottom line Automate your forklift fleet data Canada: An environmental laggard Plan for extreme weather emergencies 13-02-06 7:49 AM

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Raleigh blows out

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icycles and disappointment are top of mind these days. First, we witnessed Lance Armstrong’s fall from grace with his recent admission to Oprah that he was a Tour de France cheater. Then on a more local level, we learned Raleigh Canada would no longer be assembling bicycles at its Waterloo, Que. plant.

Armstrong, who is accustomed to cheating with fancy bicycles in the four to five figure range, will be less affected by the news from Waterloo than many Canadian boomers who likely began their cycling careers with a Raleigh.

Before 1972, Raleighs were made in Nottingham, England. My first bike was one of those: a fixed speed, matador red Mountie purchased from the older kid next door for $15. Many times it took me down Suicide Hill and up precipitous inclines long before mountain bikes were in vogue. Eventually, I stripped off the fenders and chain guard, painted it cadmium red and customized the steering with chopper-style high handlebars for an even sweeter ride.

When I was too tall and embarrassed to ride the Mountie, I purchased a Raleigh Record, the company’s bottom of the line 10-speed. It was made at the Canadian plant, established in 1972 to get around high bicycle tariffs imposed at the time to protect North American manufacturers from cheap imports, and to get closer to what was perceived to be a potentially lucrative market. Raleigh, like a few other foreign bicycle makers, imported most of the components and assembled the bikes here.

Although not Tour de France quality, the utilitarian Record was all steel, making it a solid, and virtually indestructible mode of transportation, and I was proud that it was made in Canada. It may have been bottom of the line, but certainly not bottom of the barrel. The Record is still in good operating condition 37 years later.

Although it is sad to see the end of Raleigh’s Canadian assembly business, its fate is typical of many other Canadian companies that made products we use in our daily lives that have been commoditized and absorbed by global market forces.

Over the years Raleigh has changed hands a few times, most recently being purchased by Accell, a Dutch company. The bikes assembled in Waterloo and for many years destined for Wal-Mart, were made of parts sourced from Asia.

Yet it’s the cheaply made Asian imports that have forced Raleigh to abandon assembling in Canada after five years of declining production. As a result, about 100 of the 120 plant employees will lose their jobs in June when Raleigh switches the Waterloo operation to a warehouse, distribution and service centre.

Ironically, according to a posting on the Canadian Cycling web site, “Raleigh won a continuance on anti-dumping duties through the Canadian International Trade Tribunal (CITT), arguing that removing duties would open the door to manufacturers from Taiwan and China to dump bikes in the Canadian market.”

Happily, there are other Canadian bicycle manufacturers; and one in particular has the right idea about how to compete against global market forces.

Cycles Devinci Inc. operates a 100,000 square-foot manufacturing facility in Chicoutimi, Que., where 45 to 75 employees work at any given time. It brags that raw materials go in one end and finished road, mountain and hybrid bicycles come out the other. But the company isn’t resting on its saddle. It also operates an R&D department that applies design methods similar to the automotive and aerospace industries, aiming this innovative firepower at export market segments where cheap Asian bicycles are left in the dust.

Note to Mr. Armstrong: that’s competing to win without the use of performanceenhancing drugs.

Joe Terrett, Editor Comments? E-mail JTerrett@plant.ca.

Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Vol. 72, No. 01, January/February, 2013 Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

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CAMARO COVER PHOTO: GENERAL MOTORS

Editorial

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Features

>> TRENDS

12 AUTOMOTIVE The Canadian automotive industry is looking good over the next few years.

GROWTH Hard-chargers from emerging markets are outpacing western multinationals.

BUSINESS CONFIDENCE Spooked billion-dollar North American companies are dialling back investment plans.

>> OPERATIONS

14 SAFETY Plan ahead for extreme weather emergencies.

HEALTH Watch your back when performing repetitive tasks.

15 MAINTENANCE Reliability adds $7 million to ArcelorMittal’s bottom line.

THINK LEAN Visibility helps dig through the clutter and get to the waste.

TECH TIP Use infrared testing to monitor DC motor brushes.

>> SUSTAINABILITY

16 ENVIRONMENT Canada is an environmental laggard among OECD nations.

GREEN MANUFACTURING Extend your green efforts along the value chain.

RETROFIT VDTs reduce energy use at a Demix Construction asphalt plant.

>> MANAGEMENT

17 PROCESS IMPROVEMENT Build your bottom line faster.

HUMAN RESOURCES Address employee issues before getting down to the business of a merger.

>> INNOVATION

18 BIOFUELS Agrisoma has developed a “drop-in” renewable feedstock for jetliners made from mustard seed oil.

AUTO21 R&D Researchers are striving to create cleaner diesel using hydrogen.

>> TECHNOLOGY

19 AUTOMATION iWarehouse drives productivity in forklift fleets.

SUPPLYLINES Supplier news.

20 PRODUCT FOCUS Test and measurement.

22 PRODUCTS AND EQUIPMENT What’s new in industrial products, machinery.

25 PLANTWARE Hardware and software for managing plant operations.

Departments

4 Industry View 6 Events 8 Labour Relations

10 PLANT Pulse 26 Postscript

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protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. No responsibility for the accuracy of these performance claims can be assumed on the part of PLANT or BIG Magazines LP. Contents copyright© 2013 BIG Magazines LP, may not be reprinted without permission.

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Departments

>> Industry View

>> Bulletins Blue Giant Equipment Corp. has launched a US operation that includes a plant in Greensboro, NC. The Brampton, Ont. manufacturer of docking and material handling equipment said Blue Giant Equipment LLC will provide additional production space and favourable freight times to customers in that market.

Premier Tech has acquired MOULDMAN- Gestão de Moldes SA, a manufacturer of rotomoulded plastic parts based in Montijo, Portugal. The acquisition allows the Rivieredu-Loup, Que.-based company to boost manufacturing capacity of rotomoulded plastic parts and components. MOULDMAN gets a name-change to Premier Tech Iberoto and will sell its and Premier Tech’s products in the European market.

Black Diamond Group Ltd., a modular building and energy services firm based in Calgary, has acquired 90% of the modular rental business and 20% of the manufacturing business of Australian Portable Buildings Pty. Ltd. Financial details were not released.

Toyota taps innovation fund for $34M

Cambridge plant to assemble the Lexus RX 450h SUV CAMBRIDGE, Ont: Toyota Motor Manufacturing Canada (TMMC) has received a $34 million investment from the Federal and Ontario governments to fund the construction of new assembly lines and add jobs at its Cambridge, Ont. manufacturing facility.

The funding, split 50-50 between the two levels of government through the recently renewed Automotive Innovation Fund, is in addition to a more than $125 million investment from Toyota that will generate up Toyota team members working on the interior of a Corolla.

PHOTO: TOYOTA to 400 manufacturing jobs.

The Japanese automaker intends to construct new assembly lines to produce the Lexus RX 450h, which is expected to go to into production in 2014.

The RX 450h will be the first hybrid vehicle assembled in Canada.

The federal government recently renewed the $250-million Automotive Innovation Fund (AIF) for another five years. The project, introduced in 2008, provides funding for large-scale automotive R&D projects valued at more than $75 million.

Last March, Toyota invested more than $80 million at its Woodstock, Ont. facility to increase production of its RAV4 crossover vehicle from 150,000 to 200,000 units.

With the RX 450h, Toyota’s Canadian production will increase to more than 500,000 units annually.

TMMC has assembled more than 5 million vehicles since coming to Canada in 1988.

Husky Energy, a Calgary-based integrated energy company, is celebrating its 75th anniversary this year. It began in 1938 as a small, family owned asphalt and bunker fuel business, and has grown into a 5,000 employee company with 2011 revenue of $24.5 billion. Its operations cover Western Canada to the Midwestern US, the shores of the Atlantic, and to emerging energy markets in the Asia Pacific region.

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NORTH BAY, Ont: Schauenburg Industries Ltd. has been awarded more than $30,000 to invest in skills training through a workforce upgrade initiative.

The Yves Landry Foundation administers the program, called Achieving Innovation and Manufacturing Excellence (AIME) North.

The investment will be used to enhance the company’s service abilities and handle increased customer demand.

The $2 million AIME North initiative was introduced by the federal government in 2012 to lessen manufacturing training costs when companies are introducing new processes, tools and technologies.

Funding is available to northern Ontario manufacturers.

Schauenburg Industries in North Bay, Ont. manufactures engineered industrial ventilation products. It employs 25 people and exports its production to the US, Europe and Czech Republic.

Raleigh stops making bikes in Canada

Competitive dynamics means outsourcing from offshore

Strategic Oil & Gas Ltd. has approved a 2013 capital budget of $75 million. Up to 80% of the budget will be spent on drilling, completion and workover related activities, while the remaining $15 million will be invested in developing infrastructure to boost production at its Steen River operation.

Enerkem Inc.’s Alberta Biofuels facility in Edmonton is under construction and will be one of the first full-scale advanced biofuels facilities in North America.

The city’s non-recyclable and non-compostable waste will be processed to produce renewable fuels and chemicals. The project is expected to create more than 30 permanent jobs, in addition to 200 construction jobs.

Schauenburg awarded $30,000 for training

A Raleigh Tucana 26-inch v-brake trials bicycle.

PHOTO: RALEIGH

WATERLOO, Que.: Raleigh Canada Ltd. will end production at its Waterloo, Que. plant by the end of this year.

The company says the facility will remain open as a warehousing, distribution, and service fulfilment operation.

“In the context of our global competitive market where offshore suppliers offer fierce competition, Raleigh has made the difficult decision to cease bicycle manufacturing and

FibreCITY gets $1.9M to grade biofibres WINNIPEG: The Composites Innovation Centre (CIC) is getting $1.9 million in financing from the federal government’s Western Economic Diversification program that will go towards evaluating and grading agricultural fibres for industrial uses.

The CIC, a non-profit organization based in Winnipeg that conducts industry-driven applied research into advanced biocomposite materials, will put the funding toward the purchase of equipment for the Prairie Agriculture Fibre Characterization Industrial Technology Capability (FibreCITY) centre.

Described as Canada’s first agricultural fibre grading centre, the facility will evalu-

ate and grade the capabilities of agricultural fibres used in key industries, leading to the commercialization of biofibre products.

“Of paramount importance to having (for example) ground transportation vehicle manufacturers readily accept using natural fibres in their products, is to have an assurance these materials will last the lifetime of the vehicle,” said Sean McKay, executive director of the CIC. He said the intent of FibreCITY is to develop the necessary test capabilities, material databases and standards to ensure natural fibres selected for industrial uses will be consistent with their requirements.

assembly in Canada, as this activity is no longer economically viable,” said Chris Enoksen, president of Raleigh Canada.

Raleigh Bicycle Co., one of the world’s oldest bicycle manufacturers, was founded in 1887 in Nottingham, UK. The company has been in Canada for the last 75 years, but imported its bikes from the UK until 1973.

Raleigh Canada Ltd., which is owned by Netherlands-based Accell Group, has manufactured

bikes on a seasonal basis at the Waterloo facility for more than 30 years. Its 100 manufacturing and production employees will keep their jobs until the end of the normal seasonal production cycle in June.

The Quebec-based plant was the company’s only manufacturing facility in Canada.

For 2014 and beyond, Raleigh will work with selected offshore suppliers to serve its Canadian distribution network.

Harting gets a president for Canada MONTREAL: As part of its expansion plans into the Canadian market, the Harting Group has named Jon DeSouza president and CEO of Harting Canada Inc. DeSouza, who will retain existing responsibilities as executive vicepresident of sales for Harting Inc. of North America, says the company’s intention is to build a local sales and support structure to support the Canadian market.

Harting’s American operations tallied the company’s largest revenue growth in 2012, jumping 13.6% to more than $65 million. DeSouza said the company’s expansion into Canada, just more than a year later, has contributed significantly to that growth.

“Our North America strategy is focused on proximity to our customers and distributor base where both the US and Canada play very important, but distinguished roles” said DeSouza at a press conference in Toronto.

Harting Canada is headquartered in Montreal, but the company expects to establish a sales and support team on the ground in Ontario.

The Harting Technology Group, family owned and based in Germany, employs approximately 3,500 people globally across more than 40 subsidiaries and branch offices. It produces connectors for industrial, telecom and energy applications at production facilities in Europe, Asia and the US.

January/February 2013

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Industry View << Departments

Orbite produces first tonne of high purity alumina

Ice River Springs buys Arrowhead

Cleantech company anticipates ramping up commercial production by Q2 MONTREAL: Orbite Aluminae Inc. has produced its first tonne of high-purity alumina (HPA) as part of the initial commissioning and testing of its commercial-scale production plant in Cap-Chat, Que. HPA samples were tested by EAG, an independent laboratory in Liverpool, NY, confirming a purity of greater than 4N (4N+) was achieved.

The Montreal-based cleantech company said further commissioning activities – and raising the purity level to 5N or greater – will take up to two months to complete.

Orbite’s technologies are used to extract smelter-grade alumina (SGA), HPA and high-value elements, including rare earths and rare metals, from sources such as aluminous clay and bauxite. It does so without producing waste such as the caustic red mud residue generated from the industry standard Bayer process.

The company said operational results achieved at the Cap-Chat plant are in line with or exceed initial expectations. Noncommercial production of less than one

BioteQ Sulf-IX pilot plant is on the job VANCOUVER: BioteQ Environmental Technologies Inc. has completed the commissioning of a mobile water treatment plant that applies the company’s ion exchange technology.

The Vancouver developer of industrial water and process treatment systems says the plant, jointly owned with strategic alliance partner Newalta, is deployed at a Newalta site where it’s undergoing “further process optimization.”

Newalta is a Calgary-based environmental firm that provides services to industrial customers.

The mobile Sulf-IX plant removes calcium and magnesium sulphates from water leaving low residual concentrations, and a solid gypsum product that can be used for fertilizers, building products or soil augmentation.

The company says its process recovers up to 99% of the feed water for re-use and delivers lower capital and operating costs, lower energy consumption, and a reduced carbon footprint.

Sulphates, a form of salt, form in a wide range of industrial activities, including lime plant effluent, metallurgical process streams, refinery wastewaters, shale gas frac water, cooling tower blow-down and make-up water, flue gas desulphurization blow-down, ash pond water, steel manufacturing wastewater, and landfill leachates.

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The Cap-Char team with samples from the first tonne of high purity alumina.

tonne per day will continue throughout the commissioning phase and customers in Europe, the US and Asia will be shipped product as the material becomes available throughout the first quarter of the year.

With the installation of additional calcination equipment, Orbite said production is to increase to three tonnes per day by mid-

year and to five tonnes by year’s end.

Commercial production is to begin by the second quarter when the company plans to offer HPA powder and HPA granules ranging from 4N to 6N (99.9999%) purity.

Orbite also anticipates the production of gallium and scandium once a recovery circuit is completed in mid-2013.

Boeing workers approve early contract extension WINNIPEG: Boeing Winnipeg and the Canadian Automotive Works (CAW) Local 2169 have reached an early contract extension with its 1,147 employees that will keep jobs at the facility safe through 2018.

The contract includes a general wage increase of 2% in 2014, 2.5% in 2015, 2.5% in 2016 and 3% in 2017. It also includes a one-time ratification bonus of $5,000 and pension improvements.

Boeing Winnipeg is the largest aerospace composite manufacturing centre in Canada, employing more than 1,600 people.

The site manufactures complex composite parts for the 737, 747, 767, 777 and 787.

Omniglass SCT rises from the ashes WINNIPEG: A Winnipeg manufacturer of fibreglass for window and doorframes that was shut down by a devastating fire a year ago has risen from the ashes as a new company.

It’s reborn as Omniglass SCT, a partnership that began work on fibreglass pultruded frames and components in November at its new location inside Structural Composite Technologies’ composite plant in Winnipeg.

Omniglass Inc.’s 60,000-square-foot plant was consumed by fire on Jan. 2, 2012, causing (according to a Winnipeg Free Press report at the time) an estimated $15 million in damage, and put 65 employees out of work.

The company, which had developed a specialized pultrusion technology to build window and door frames that was licensed to other manufacturers, was sold to Serious Energy, a California-based green energy company, in 2010 by its founder, Laurie Davies.

PHOTO: ORBITE

Omniglass’s assets, including patents, processes and window and door systems, were purchased by John Zadro, president of Structural Composite Technologies, who will be president of the new company, and Omniglass general manager Leroy Dankochik.

Omniglass SCT said 10 former Omniglass employees have been hired and founder Laurie Davies is assisting with sales and business development.

“Omniglass SCT has a strong, respected brand name in the window and door industry,” said Zadro. “We have pledged to restore the company’s reputation...”

He said the new company has signed several deals with window and door manufacturers, including many former clients.

Structural Composite Technologies custom fabricates fibreglass equipment for mining, chemical, utilities, wind energy, transportation and construction industries throughout North America.

CALGARY: Ice River Springs Water Co. Inc. is acquiring all the assets of Arrowhead Water Products Ltd. for $1.65 million.

Ice River, based in Shelburne, Ont., operates 10 water bottling plants in Canada and the US. It has a closed-loop recycling facility in Ontario that produces a 100% recycled bottle from selfmanufactured resin.

The Calgary company outsourced its 15-litre bottling operations to Ice River last November last year.

Ice River will continue to sell Arrowhead’s natural spring and reverse osmosis water to the Western Canadian retail and wholesale market. Both companies remain in Alberta producing a new one-way, bisphenol A-free, 15-litre water bottle.

>> Careers OSRAM SYLVANIA, a manufacturer of lighting based in Mississauga, Ont., has appointed Graham Wark president, succeeding James Johnson, who has been named president and general manager of Valeo Sylvania. Wark started with the company in 1987 and was previously vice-president of SYLVANIA Lighting Services.

Graham Wark

Blue Giant Equipment Corp. in Brampton, Ont. has appointed Gerard O’Leary as business development manager for Blue Giant-Australia to handle demand for docking and materials handling equipment. O’Leary was previously with OLTIS Australia, a new venture that offers employee training, equipment inspections and regulatory audits.

CO2 Solutions Inc. has appointed Louis Fradette senior vice-president, process engineering and CTO. He’ll be responsible for managing the Quebec City company’s carbon capture technology. He has been an associate professor in chemical engineering at École polytechnique de Montréal.

Simon Olivier has been promoted to vice-president, growth, market strategy and business development for GE Canada, an advanced manufacturing, services and finance company with its main office in Mississauga, Ont. Prior to joining GE’s Global Growth Organization, he was general manager of renewables for Canada and the Northeast US, and held several positions with GE Capital.

Clemex Technologies Inc., a designer and manufacturer of image analysis systems and software in Longueuil, Que., has promoted Monique Dallaire, currently vice-president of product development and marketing, to COO. She’ll lead R&D at Clemex’s head office and work with a small team in France, at RAL Diagnostics SA, Clemex’s European hematology partner.

Opta Minerals Inc. has appointed John Dietrich executive vice-president who will be responsible for finance, administration, human resources, legal matters, insurance and corporate development activities. Previously he was vice-president of corporate development and CFO of SunOpta Inc. Opta Minerals is a supplier of industrial mineral products based in Waterdown, Ont. Randall Eresman, president and CEO Encana Corp., is retiring from the Calgary-based energy company. Clayton Woitas, a director of Encana and president and CEO of Range Royalty Management Ltd., has been appointed interim president and CEO.

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Departments

>> Industry View

Gunther Huettlin adds lines; 10 jobs BELLEVILLE, Ont.: Gunther Huettlin (GH) Manufacturing Inc. will use a $500,000 government investment to install three high-speed production lines and create 10 jobs at its Belleville, Ont. plant.

The repayable contribution is being provided through FedDev Ontario’s Prosperity Initiative.

The company, a manufacturer of plastic packaging materials, says the project will enhance its capacity.

Created in 2009, FedDev Ontario provides funding for companies in southern Ontario looking to help them become more competitive and create jobs.

Ottawa cuts red tape, gets a B+ Top grade on CFIB repord card

TORONTO: The federal government is getting a bit better at untangling red tape for small business. It has gone from a B- last year and a C+ in 2011 to a B+ according to the annual Red Tape Report Card issued by the Canadian Federation of Independent Business (CFIB).

The report card evaluates federal and provincial governments’ progress on regulatory reform. It looks at political leadership, efforts to measure the regulatory burden, long-term thinking, and the overall public policy context.

Provincial and Territorial grades run the gamut from the A earned by BC to the D- assessments earned by PEI, Manitoba, Northwest Territories and Yukon.

The CFIB is praising the federal government for its “one-forone” rule (a regulation must be removed for every new one introduced), appointing an independent panel to evaluate and

From C+ to B+ in two years.

PHOTO: THINKSTOCK

report on the government’s performance, and for requiring departments to set and publish measurable goals for service improvement, then report on their performance.

The Toronto-based CFIB noted the Ontario government (from a B- to a B) was active on the issue last year, “and is the province to watch in 2013.”

>> Events Lean Transformation Summit 2013 Lean Enterprise Institute March 13-14, Orlando Lean strategies and tactics from different perspectives. Visit http://www.lean.org.

Reliable Plant Conference and Exhibition 2013 Noria Corp.

April 16-18, Columbus, Ohio An annual conference and exhibition for machinery lubrication, oil analysis and reliability professionals presented by Noria Corp. Visit www.eiseverywhere. com/ehome/48232/.

Plant Visit: Decor Cabinet Company Innovation Insights/CME April 30, Morden, Man. Learn about the theory of constraints and the manufacturing of semi-custom cabinets in a small batch environment. Presented by Innovations Insights and Canadian Manufacturers & Exporters (CME). Visit www.tvp-ii. org/en/events.

PTDA Canadian Conference 2013 PTDA June 6-8, Toronto The Canadian Conference, hosted by the Power Transmission Distributors Association (PTDA), provides knowledge sessions about economic trends and markets. Visit www.ptda.org/canadianconference.

NDT in Canada 2013 CINDE/CANSMART/IZFP Oct. 7-10, Calgary The latest developments in NDT, smart materials, and structural health monitoring will be discussed with a special emphasis on topics relating to the energy industry.

Visit http://events.cinde.ca.

AME Toronto 2013 AME Oct. 21-25, Toronto Association for Manufacturing Excellence (AME) presents the Breakthrough to Your Leading Edge lean conference. Leading lean thought leaders are featured, plus best practices sessions and plant tours. Visit www.ameconference.org/2013-toronto.

For more events, visit www.plant.ca.

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6 PLANT

January/February 2013

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Departments

>> Labour

Lockouts: A common abuse of power

BY KEN LEWENZA AND DON FEHR

Y

ou’d think a typical Canadian worker (average wage about $22 an hour) would have little in common with a professional hockey player whose annual income is measured in six or seven figures, other than their mutual love of Canada’s national sport. Yet both find themselves dealing with employers who are increasingly more aggressive.

NHL hockey players are the latest victims of an increasingly common management strategy: locking out workers when

Hockey players are the latest victims of an increasingly “common management strategy… ” they won’t accept management demands for deep concessions.

Employers feel they hold the upper hand and are willing to shut down operations altogether and impose substantial economic losses on their workers, their own firms and the broader economy if they don’t get what they want, which is a lot: historic concessions in wages, benefit packages and security from the working people who ultimately produce

the wealth.

We’ve seen this strategy invoked by Caterpillar in London, Ont., which locked out its workers, then fired them altogether.

Rio Tinto locked out workers for months in Alma, Que., as did US Steel in Hamilton. Each company was profitable, yet felt empowered to extort historic rollbacks in wages and benefits.

Worried by this trend, many labour relations experts have proposed legis-

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lative measures to limit the power of companies to starve out their workers through long lockouts. In Manitoba, for example, long disputes can be referred (by either party) for binding arbitration.

This makes employers think twice about launching such aggressive attacks on their own workers.

NHL owners were the latest to invoke the lockout tactic. The league has enjoyed seven straight years of record revenues (since the last lockout in 200405). Last year revenues reached $3.3 billion, an all-time high. The industry is profitable and the franchises worth more than ever (Toronto is estimated to be worth more than $1 billion). Yet the owners precipitated this latest action to starve out the players and fundamentally rewrite the economics of the game.

Lock outs have been used elsewhere in professional sports. The NFL locked out its referees, hoping to squeeze a few more drops of profit from the operations.

NHL owners’ demands were especially eye-popping: reducing players’ share of revenues, restricting the length of player contracts, weakening free agency, and ending salary arbitrations. This would dramatically redivide the NHL’s economic pie, fattening owners’ profit margins at the direct expense of the players who make it all happen.

Burden on the fans The burden also falls on the fans who just want to see hockey, and on the tens of thousands of workers and small businesses who depend directly or indirectly on hockey for their livelihood.

Remember, hockey players may earn high incomes during the few years they are playing, but for most, earning capacity after retirement is limited – and average playing careers are short due to injuries and other factors. Like other workers, hockey players have little control over the direction of the business.

They deserve security, respect and a fair share of the wealth that they produce with their sweat and effort.

The NHL owners’ aggressive position was more than just an affront to players and fans of the game. It was a sign of the very worrying times we live in. Employers – no matter how wealthy or profitable they may be – feel entitled to wring even more from the pockets of their employees, regardless of the collateral damage.

When NHL owners get away with this kind of tactic, small wonder so many other employers feel emboldened to do the same.

Ken Lewenza is the president of the Canadian Auto Workers union. E-mail cawcomm@caw.ca. Don Fehr, executive director with the National Hockey League Players’ Association, spoke to 800 CAW delegates at the union’s semiannual Council meeting in Toronto.

Comments? E-mail jterrett@plant.ca.

8 PLANT

January/February 2013

13-01-29 1:38 PM

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13-01-29 10:46 AM

Departments

>> Economy INDUSTRIAL GOODS PRICES DECREASE index (20002=100) 120

110 105 100

purchasing executives.

It shows new orders increased, reflecting greater demand and new product launches, but RBC said output levels were broadly unchanged from November.

Employment continued to increase yet the job creation rate was at an 11-month low and input prices rose at the slowest pace since July.

“A weak global economy and a strong loonie have weighed somewhat on the broader sector and contributed to a flat PMI reading compared to November,” said Craig Wright, RBC’s senior vice-president and chief economist. “That said, as the cloak of uncertainty is removed from the global economy in the coming months related to fiscal policy in the US and elsewhere, we expect that demand for Canadian exports will rise, as will investment and hiring across the economy.”

INVENTORIES ARE RISING

I

n a study of longer-term trends in manufacturing inventories, Statistics Canada notes a gradual rise over the past two years.

In the first 11 months of 2012, total inventories averaged $65.2 billion per month, the highest level since 2008. Each stage of manufacturing, from raw materials to goods-inprocess and finished products, posted higher levels.

Statistics Canada said over the past decade, raw materials accounted for 39.8% of total inventories, compared with 44.5% in 2004, their greatest proportion for the past 10 years.

Goods-in-process inventories took the smallest share but they have been on the rise since 2004 accounting for 26.9% of total inventories, their highest showing since 2002.

Finished product inventories rose, but their share of the total decreased to 33.3%, the lowest point since 2002.

J 2008

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J 2011

N 2012

IMPORTS UP, EXPORTS DOWN $ billions of dollars, seasonally adjusted 45 Exports

43 41 39 37 35 33

Imports

31 20 27

NJ 2007

J 2008

J 2009

J 2010

J 2011

N 2012

Canada’s merchandise imports rose 2.7% to $39.5 billion in November, but exports dropped 0.9% to $37.5 billion, which widened Canada’s trade deficit with the world from $552 million in October to $2 billion.

INVENTORY TO SALES RATIO DIPS

ratio 1.7 1.6 1.5 1.4 1.3 1.2

NJ 2007

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J 2010

Lower prices for petroleum and coal products (down 2.8%) were mostly responsible for a 0.3% dip in November’s Industrial Product Price Index. Metal products were also down (0.6%), notably copper and nickel products. Motor vehicles and other transportation were up 0.8%.

1.1

THE RIGHT ENCLOSURE AT THE RIGHT TIME

J 2009

SOURCE: STATISTICS CANADA

N

ovember was a good month for manufacturing sales. Statistics Canada reported a 1.7% gain for a total of $49.9 billion, the highest level since May 2012. The biggest increases came from the transportation equipment, primary metal, and chemical industries.

Among the positives were a 0.8% decline in inventories with the inventory-to-sales ratio dropping from 1.35 to 1.31. Unfilled orders and new orders rose 3.6% and 6.2%.

Despite the promissing data, TD Economics forecasts some near-term weakness in the next couple of months.

TD economist Francis Fong said although the worst of the US fiscal cliff was technically avoided, there are still issues regarding negotiations on government spending cuts, and recession in Europe despite a substantial improvement in financial conditions.

The forecast for Canada and the US is for modest GDP growth through the first quarter but acceleration is expected by the second quarter.

“With Canadian manufacturers and exporters still tightly-linked to the fortunes of the US economy, this should translate into a stronger pace of manufacturing sales growth,” said Fong in a TD report.

In December, there was just a marginal increase in new order volumes and little change in output, according to the RBC Canadian Manufacturing Purchasing Managers’ Index.

RBC PMI composite indicator remained at 50.4 for the second month, signalling only a marginal improvement in manufacturing operating conditions.

The survey conducted in association with Markit, a global financial information services company, and the Purchasing Management Association of Canada (PMAC), collects data from 400 industrial company

NJ 2007

SOURCE: STATISTICS CANADA

Growth ahead for manufacturing

95

J 2008

J 2009

J 2010

J 2011

N 2012

Manufacturing inventories were down 0.8% to $65.5 billion in November with decreases in the petroleum and coal, and computer and electronic product industries. The inventory to sales ratio declined from 1.35 in October to 1.31.

SALES DOLLARS ADVANCE

$ billions 52 50 48 46 44

SOURCE: STATISTICS CANADA

ECONOMIC DE VELOPMENTS AND TRENDS

Industrial product price index (IPPI) IPPI excluding petroleum and coal products

SOURCE: STATISTICS CANADA

115

42 40 38 36

Chained (2002) dollars Current dollars

34 32

NJ 2007

J 2008

J 2009

J 2010

J 2011

N 2012

Wholesale sales rose 0.7% in November to $49.6 billion thanks to higher sales (6.3%) in computer and communications equipment, and supplies, which helped the machinery, equipment and supplies sector enjoy the greatest dollar advance (1.8%).

10 PLANT

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Trends

>> automotive

On the

road again

record auto sales drive the Parts sector

Parts suppliers need to get global and more innovative to continue growth as pent-up demand dries up.

By Matt Powell, assistant editor

C

anada’s automotive sector enjoyed its second-best year ever in 2012. It sold more than 1.6 million vehicles, a level reached only once before in 2002, thanks to pent-up post-recession demand, consumer confidence and buying power, and Japanese automakers looking to diversify their supply chains.

In the US, 15 million units boosted demand for Canadian-made parts, helping to bring overall North American sales to their highest level since 2007. Of course, the economic meltdown that followed in 2008-2009 sent the auto sector into a skid that required a multi-billion dollar bailouts from Canadian and US governments, so it has been quite a rebound. The Canadian industry earned pre-tax profits of $1.35 billion last year, while surging double-digit sales growth in the US culminated in a 15% boost to Canadian exports, according to the Conference Board of Canada, an Ottawa-based research agency.

DesRosiers Automotive Consultants, based in Richmond Hill, Ont., reports Canadian production was up 24%, producing 2.003 million units through the end of October, compared to 1.6 million units during the same period in 2011.

Parts production also ended the year on a high note, increasing by 22.4%, according to the Conference Board. Its Autumn 2012 Industrial Outlook suggested increases in parts output, like vehicle production, were led by heavier sales in the US and more activity by Japanese automakers.

Honda’s North American vehicle production was up 29% in October to 161,142 vehicles, while Toyota, which led nationwide sales increases (up 14.8%), will increase RAV4 production at its Woodstock, Ont. plant to 200,000 units from a current 150,000.

US manufacturing production is another accurate indicator of what’s going on in Canada.

“What happens in the US is really a key driver for the Canadian automotive industry because so much of our production goes there,” says Carlos Gomes, senior economist and automotive industry specialist at Scotiabank Economics.

Indeed, about 80% of Canadian vehicle and part production is shipped to customers south of the border And despite all the hubbub created by the “fiscal cliff,” the outlook for 2013 is rosy. Low-interest rates, attractive buying incentives, and aging vehicles are driving demand, while healthier job numbers have boosted consumer confidence and buying power.

2012 CANAdiAN vehiCLe mANufACTuriNg – $1.35 billion in pre-tax profits – total sales of 1.6 million units – Growth of 7.1% between Jan. and aug.

– 15% increase in exports of canadian auto goods – canadian parts production up 22.4% – automakers assembled 2 million vehicles through october.

Source: Conference Board of Canada

12 PLANT

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Building the Ford Flex at the Oakville, Ont. assembly plant.

2012 TOP CANAdiAN AuTOmAkers 1. Ford (275,953 units) 2. chrysler (242,224 units – up 5%) 3. General Motors (226,825 – down 6.6%) 4. toyota (165,342 units through october) 5. honda (148,712 – up 20.8%) Source: DesRosiers Automotive Consultants

Gomes says the cost of living is at its lowest level in a decade, averaging 16% of disposable income, a factor that puts more cash in consumers’ wallets to replace the clunker leaking oil all over the driveway.

“As long as people have the ability to buy, we will continue to see the auto sector improve,” he says.

That’s good news for the parts sector.

Thanks to a strong showing in 2012, parts companies are handling increases in demand by boosting capacity, hiring more employees and investing in new machinery and equipment to make their operations more efficient, says Remi Tosti, manufacturing lead for southwestern Ontario at Toronto-based consultancy Deloitte LLP. “A lot of companies have introduced six sigma and lean manufacturing practices in their operations, so they’ve cut a lot of fat to boost capacity,” he says.

Toyota Boshoku, which supplies seat, door trim panels and interior components for the Woodstock-built Toyota RAV4, is adding up to 100 positions to handle increased demand for the popular crossover. Meanwhile, Aurora, Ont.-based Magna International has projected 2013 sales will exceed $32.7 billion, 70% of which will come from North American operations.

Among assemblers, Toyota is adding 400 jobs at its Woodstock, Ont. RAV4 plant to handle production increases.

PHOTO: FORD MOTOR CO.

Ford is adding 300 jobs at its Oakville, Ont. plant to make more Edge, Flex, MKX and MKT crossovers, albeit those positions were required by a ratified labour agreement with the Canadian Auto Workers (CAW) union, and will likely be given to some of Ford’s employees laid-off by the closure of the company’s St. Thomas, Ont. plant last year.

The impact of General Motors’ decision to relocate production of the Chevrolet Camaro from its Oshawa, Ont. flex-plant to Michigan remains unknown. The automaker cited lower capital investment needs and improved efficiencies to validate the move, but it has angered CAW president Ken Lewenza, who called the relocation a betrayal to Canada.

The move affects 14 Canadian parts suppliers that will now have to deal with higher costs and longer travel times. GM may reconsider its Camaro supplier base, but the president of the Automotive Parts Manufacturers’ Association of Canada (APMA) is optimistic that’s unlikely.

“It’s a negative factor and a sad story, but the impact should be muted,” says Steve Rodgers. “Lansing’s not that far away. Canadian suppliers will have ample opportunities to bid on that business.”

Rodgers says the overall outlook for parts suppliers in Canada beyond 2014 is positive, and growth will be helped along by Japanese automakers, such as Toyota, making significant investments in the Canadian market.

He’s also confident that Buy American legislation won’t hamper cross-border business.

“It’s not a huge factor in our business thanks to NAFTA,” he says. “OEMs have a tendency to seek out the best, most competitive suppliers and don’t make much of a fuss over such factors.”

Toyota, for instance, has been awarded $34 million by the federal and Ontario governments to compliment its

January/February 2013

13-01-30 10:49 AM

AuTOmOTive seCTOr OuTLOOk 2013-14 – revenue increase of 11.4% in 2013 – revenue increase of 7.4% in 2014 – Parts production up 10% in 2013; profits up 3.7% Source: Conference Board of Canada

$125 million investment to construct new assembly lines at its Cambridge plant to produce the Lexus RX 450h SUV, which will become the first hybrid vehicle assembled in Canada once production starts in 2014. Rodgers says it’s a welcome addition to Canadian auto production.

“We know that Toyota’s first preference will be to eliminate logistics costs and to source locally, so Canadian companies will definitely get the first look,” he says. “If you’re competitive, you’ll have a chance.”

Gomes believes there’s major opportunities for Canadian suppliers globally, and there’s a major requirement for parts makers to look abroad for business, but they also need to be more innovative.

Going global Competitive threats from growing economies such as Mexico and China, where wages are lower and quality is improving, are putting pressure on the Canadian sector.

Mexico is already home to more than 1,100 parts manufacturers and 300 Tier-1 suppliers. Mazda and Nissan have made significant investments in new Mexican manufacturing operations recently, and the APMA expects automotive production sales there to exceed $120 billion by 2020.

Rodgers isn’t overly concerned about current production being moved from Canada to Mexico, but he is concerned that Mexico will pull new business away; however the NAFTA partner represents an opportunity.

“Mexico will become the sixth or seventh biggest automotive production centre in the world; it’s only a matter of time,” he says. “But then again, it’s a lot easier for Canadians to get to Mexico than it is to get to China. There’s opportunity there; to expand your company’s global reach.

Gomes agrees growth will be in emerging markets.

“One of the risks the Canadian industry faces is its almost exclusive reliance on the US,” he says. “If we don’t start to focus on diversifying, we run the risk of losing out on growth happening globally.”

Although Mexico may represent the next big wave, Tosti offers a few words of caution.

“Mexico is risky. Despite a strong, skilled workforce, my experience with setting companies up there is that managerial talent is lacking, so be ready to send management, or find a strong strategic partner to make sure the operation is run properly.”

Innovation will also be key for parts makers that enter global supply chains and earn new business abroad.

The federal government is providing some help to the automotive sector by extending a five-year, $250-million innovation subsidy. The program was created in 2008 to help keep the sector afloat during the recession.

The fund will help auto companies be more innovation and competitive, but will require companies to invest their own cash to access the money for specific research and development projects.

The gains attained in 2012 are exceptional, and can’t be sustained forever, but Rodgers is confident production increases will continue.

“NAFTA production will likely hit 15.8 million units by 2014, and grow to 16 million by 2016, so there’s still growth, but it will likely plateau by [then],” he says.

Gomes is confident the Canadian sector will continue to enjoy gains of up to 5% in 2013, although much lower than the 20% seen in 2012. And the Conference Board suggests Canadian sales gains will be limited over the next five years as demand built-up during the recession subsides, but in the short term it expects 11.4% in 2013 and 7.4% in 2014.

If life is a highway, the Canadian auto sector will be enjoying the ride for the next few years, a welcome change from the highway to hell of 2008-09.

Comments? E-mail mpowell@plant.ca.

www.plant.ca

12-13-PLNT.1.indd 13

>> Growth

global challengers outpace multinationals they’re spending $1.7 trillion a year to fuel growth

G

lobal “challenger” companies from emerging markets are overtaking traditional multinationals, according to a report by the Boston consulting Group (BcG). the international consulting firm based in Boston (with canadian offices in toronto) has identified 100 companies that are growing so quickly overseas they’re “reshaping industries.” its Allies and Adversaries report finds companies from 17 countries are outpacing household names in the us and europe and are having a profound impact on the global economy. colombia and Qatar have joined the list for the first time and seven companies with large sustainable global positions have moved past challenger status. in the past five years they’ve have added 1.4 million jobs, while employment at the nonfinancial s&P 500 companies stayed flat. average revenue was $26.5 billion in 2011, compared with $21 billion for the s&P 500s companies and $20 billion for the entire s&P 500. in the same year, they purchased more than $1.7 trillion

of goods and services and invested more than $330 billion in capital expenditures. twenty-six of the companies are new to the list, displacing other companies whose attempts to globalize were met with obstacles. several of the displaced companies were from Bric (Brazil, russia, india, and china) nations. the report calls on business leaders in the west to work with this new generation of companies. it cites one partnership involving dr. reddy’s laboratories, an indian pharmaceutical company known for generic manufacturing, which works on product development, and Merck, a health care company based in Germany, that handles the manufacturing of generic cancer treatments. the number of state-controlled companies on the list has fallen from 36 in 2006 to 26 in 2013.

BcG noted many state-owned and state-controlled enterprises have not yet cracked the code of global expansion. visit https://www.bcgperspectives.com for a copy of the Allies and Adversaries report.

>> Business confidence

global concerns impact investment economic tremors shake cFo’s optimism

deloitte signals survey shows canadian confidence took a big hit in the fourth quarter of 2012.

E

conomic problems in the US and Europe are eroding the confidence of big (averaging more than $5 billion in annual revenue) North American businesses, according to the latest Signals Survey of 86 chief financial officers (CFOs) by the Deloitte Canada consulting firm.

Their responses show continuing uncertainty about the global economy and measures the US might have taken to deal with its budget deficit, which pushed their net optimism among the CFOs in the fourth quarter of 2012 to its lowest level of the year.

Deloitte said the decline was particularly pronounced in Canada, where net optimism among the 17 executives fell from 47 in the third quarter to -6 in the fourth. US CFOs showed a decline from -16 to -21. And companies in both countries said they are responding to those concerns by lowering growth expectations for capital investment, R&D and domestic hiring. While US executives were raising sales growth expectations, Canadians had lowered theirs to the lowest level in more than a year.

“Canadian companies appear to be increasingly concerned about a negative impact on their operations caused by ongoing economic problems in the United States and Europe,” said Trevor Nakka, co-leader of Deloitte Canada’s CFO program. “This is leading many of them to take steps to preserve cash and protect revenues from existing markets rather than investing and expanding.”

Here are some report highlights: • Potential detrimental impacts of the “fiscal cliff” in the US became the most worrisome risk for CFOs in the fourth quarter, surpassing global economic stagnation and the European crisis.

• The European crisis still ranks in the top three most worrisome risks, but about 60% of CFOs have no plans for The European crisis still ranks in the top three of CFO’s most worrisome risks. PHOTO: THINKSTOCK addressing changes in the European situation.

• The top four challenges include revenue growth from existing markets (60%), framing and/or adapting strategy (37%), talent (33%) and prioritizing investments (29%). For Canadian CFOs, talent was tied with revenue growth from existing markets as their top challenges.

• CFOs said they most want to improve finance’s capabilities around strategic planning (52%), IT/information management (48%), and budgeting and financial planning (47%).

• Major change initiatives, changing regulatory requirements and strategic ambiguity are the three biggest job stresses, while board relationships and demands appear to be a growing source of stress.

For a copy of the Signals Survey report, visit www.deloitte.com and search Signals Survey.

PLANT 13

13-01-28 8:14 AM

Operations

>> safety

Weather

emergencies is your PlanT PrePared when

a severe sTorm sTrikes?

Canada experiences some extreme weather events that include tornadoes, hail and ice storms. Planning ahead will keep your workforce safe.

By Tim means

N

o two emergency situations are alike. Lightning striking a commercial hydroponic farm is different from a lightning strike at a fireworks factory. And while some variables can’t be accounted for, such as why a tornado hit this house and missed the one next to it, planning and preparation helps keep it together when extreme weather strikes.

Start by categorizing threatening events according to how quickly potential danger arises. Slow onset events such as climate change, soil erosion and droughts demand less expedient notification and action. It’s the rapid onset events that put pressure on emergency notification planners and systems.

Tornados, hailstorms and winter ice storms are among the most sudden and unpredictable of nature’s weather disruptions. Canada experiences an average of 80 tornados a year, most between May and September, according to Environment Canada. There are more twisters in

the US, many of them forming in a central area known as Tornado Alley, which extends through Ontario and the Prairies.

Environment Canada notes southern Ontario, southwestern Quebec, Alberta, and a band stretching from southern Saskatchewan and Manitoba through to Thunder Bay, Ont. are prone to violent storms. The interior of BC and western New Brunswick are also tornado zones.

Hailstorms present another major danger. According to the Insurance Bureau of Canada, a Calgary storm in 2010 set a record for damage after a bombardment of hailstones measuring nearly four-centimetres wide and a storm that hit the city in 1998 caused a warehouse to collapse. Two years earlier, a storm knocked out 911 service.

And let’s not forget one of the most severe winter storms in recent memory.

The “Storm of the Millennium” in January 1998 killed 25 people and left millions without power, some of them for weeks.

The Financial Post estimated damage at $500 million and losses from interrupted production at billions of dollars.

Planning ahead for these emergencies is key. Create emergency plans for shutting down equipment and getting your people to storm shelters, but also practice and update them regularly.

Monitor weather conditions on a day-to-day basis. Events can occur in

Have a plan in place for rapid onset weather emergencies to keep your people and plant safe.

hours, even minutes. There may be long lead time indicators of an earthquake or hurricane, but the actual temblor or flooding can happen unexpectedly. The best source for warning of rapid onset weather events is WeatherRadio Canada or NOAA Weather Radio in the US. Both systems are government-operated warning systems that push alerts out over the weather band to dedicated radios on towers across the country. Alerts are in the Common Alerting Protocol (CAP) format, which are automatically understood by a variety of emergency notification systems.

When a severe event is detected, notify your people and set your emergency plans in motion. Consider how you alert

>> health

Watch your back Tips for safer manual materials handling

M

anual tasks that involve awkward postures and repeated, forceful movements can cause injuries to the lower back. about three of every four Canadians whose jobs include manual material handling eventually suffer pain due to a back injury. These injuries account for about one-third of all lost work, 40% of all compensation costs and each year, about 8,000 Canadian workers are permanently disabled. organize the following to prevent back injuries: Work flow. a job becomes more repetitive and strenuous than necessary when it’s poorly planned. Temporarily storing articles in one place and then moving them to another, storing and moving them again, are unnecessary. eliminate them with a more efficient workflow.

Job design/redesign. decreasing a job’s physical demands and improving environmental conditions are important steps toward preventing back injuries. Powered or mechanical handling systems such as lift tables and conveyors take on the heavier handling tasks. where this equipment is unavailable, it’s still possible to decrease manual demands on the worker by altering the weight of the objects being handled, splitting the loads into smaller ones, changing the layout of the work area, and alternating heavy tasks with lighter ones.

Training. with proper training, workers are much better equipped to avoid injury. They will learn to warm up the muscles before lifting; stand

Conveyors help decrease a job’s physical demands.

PHOTO: THINKSTOCK

and grip properly; lift objects using their body weight and muscles to maximum effect without jerking, twisting or side bending; and only lifting loads they can handle safely. workers must also be taught to take advantage of rest periods and correct problems before they cause permanent injury.

This article was written by the Canadian Centre for Occupational Health and Safety (CCOHS), a not-for-profit federal corporation that promotes the physical, psychosocial and mental health of Canadian workers by providing information, training, education and management systems.

Visit www.ccohs.ca.

PHOTO: THINKSTOCK

everyone; how you tell them what to do; and how they notify you.

Action plan Emergency notification in a large facility with hundreds of people will be more involved than telling everyone to “shelter in place.” Work out where each group will take shelter, how they will get there in a safe and orderly fashion and establish a way to quickly notify everyone in the plant to initiate emergency procedures.

Old emergency notification systems were based on sirens designed to evacuate buildings. Modern systems run on easy-to-use software that features voice notification and sends different alerts to different parts of the facility. This allows emergency and plant managers to broadcast specific instructions. Alerts are planned and programmed in advance so the plant manager can send them in seconds, with a few clicks of the mouse.

Systems also integrate with a variety of diverse technologies. For example, sensors that detect and report non-weatheremergencies such as hazardous spills can also be monitored and pulled into the software. Systems often feature an inbound emergency call for help feature as well. Hitting a button immediately transmits the location of the trouble spot, and connects with security or other personnel via a live voice link.

Emergencies do not discriminate. Having plans in place for the most common, destructive, rapid-onset weather disruptions will go a long way toward keeping your people and plant safe.

Tim Means is the director of product management, Metis Secure Solutions, an Oakmont, Pa. supplier of emergency notifications systems. Visit www.metissecure.com.

Comments? E-mail jterrett@plant.ca.

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January/February 2013

13-01-28 8:16 AM

Maintenance <<

>> Think lean

The iron miner applies maintenance strategy to help it lower the cost of mining more rock per ton of iron as the concentration of reserves slowly depletes.

Maximize your value stream

Get its true measure with a mapping event

STeve Gahbauer by richard KunST

T

he maintenance department at ArcelorMittal Mines Canada has contributed $7 million to the company’s bottom line by adopting a reliability approach across its mobile mining equipment assets, with some help from asset management performance software.

ArcelorMittal Mines is one of North America’s leading producers of iron ore, operating an open pit mine and a crusher/concentrator facility in northern Quebec that produces 18 million tonnes of ore concentrates annually.

The company’s proven and probable reserves are estimated to last another 50 years or so, but the concentration level is gradually and constantly decreasing. This presents a challenge to the mining firm. It must now mine and process more rock for each tonne of iron produced and do so without increasing manpower or equipment. This required a rethink of the maintenance strategy for heavy-duty mobile mine equipment, which would play a major role in cutting costs and ensuring more efficient operation.

According the old way of thinking, trucks, tractors, loaders and other mobile units were taken out of service for repair when they broke down or preventive maintenance-specified running hour limits were reached. To avoid a halt in production, a larger fleet of mobile equipment was necessary to replace units that were in the sick bay.

Repairs were performed according to the availability of parts and personnel, often extending unaffordable downtime.

The new approach focused on optimizing asset reliability. This required closer attention to overall equipment health, not just hours of operation. The company soon realized the improvements would have a significant impact on the bottom line.

Ivara Corp., a provider of industrial

R The new reliability strategy has eliminated the need for replacement fleets to cover vehicles taken out of service.

PHOTO: ARCELORMITTAL

Mining mobile

asset value a reliabiliTy focuS addS $7 Million To arcelorMiTTal’S boTToM line asset performance software in Burlington, Ont., provided software that drove a proactive, condition-based approach to maintenance. This new strategy focused on improving the business process of maintenance, ensuring the things maintenance people do each day include the right work on the right equipment at the right time.

Collateral benefits The installation of Ivara’s Maintenance Task Analysis and its RCM2 software was paired with another initiative: establishing a Technology Transfer Group (TTG) whose responsibility was to provide transitional direction to ArcelorMittal’s business units.

The TTG emphasized the creation of key performance indicators (KPIs) that would help measure and track

>> Tech Tips BrushiNg uP oN DC MoTors

O

ne way of checking the condition of brushes in dc motors is to use an infrared camera. but look for cold brushes instead of hot ones. hot brushes carry current to the commutator, Use infrared cameras while the cold brushes do not carry current. to detect cold instead of hot.

To perform the inspection, either use an infrared window on the dc motor or open covers. The infrared will not penetrate glass or plexiglas. if you do detect cold brushes, inspect the brush and holder to determine whether the brush is jamming, too short, or the springs or shunt are damaged.

improvements, and identify areas for additional improvement.

As a collateral benefit, the process also forges a closer relationship between operations and maintenance.

Operators work closely with maintenance workers to create a structural maintenance program that better meets the requirements of both groups – much like Total Productive Maintenance (TPM). Comprehensive mapping roles and responsibilities at the plant level ensure both groups are continuously linked to the specific process needed to achieve world-class maintenance standards.

The results speak for themselves.

Maintenance saves and contributes $7 million to the company’s bottom line yearly; mine production has increased 28%; mobile equipment maintenance costs are down 8.3% per cubic metre of concentrate; and there was a 5.1% increase in manpower efficiency. Mobile equipment availability has increased substantially, replacement fleets for units taken out of service for repair are no longer necessary, and major safety incidents were reduced by 74.4%, resulting in an additional $1.1 million in savings.

Steve Gahbauer, an engineer and Toronto-based freelance writer, is the former engineering editor of PLANT and a regular contributing editor.

E-mail gahbauer@rogers.com.

unning an enterprise value-stream mapping event allows your team to move from being “in” to “on” your organization. They need to walk, interview and document the entire value stream, but the exercise is significantly enhanced by adding “outside eyes” from suppliers, customers or members of a lean consortium.

Taiichi ohno, one of the fathers of the Toyota Production System (TPS), coached his budding TPS leaders to carefully observe reality by drawing a chalk circle on the floor, telling them to stand in it for several hours observing reality with their minds wiped clean and undistracted by things seemingly more important to do.

Process visibility reveals problems to everyone, not just managers. When something is amiss, workers quickly determine the cause and take action. it also encourages people to think of more ways to improve. empowered workers learn to self-manage processes and spontaneously improve them. very small processes, such as integrated circuit production, can’t be seen directly, so they are made mostly through data and remote control. but even with fully gowned workers and minute processes, process visibility reveals a remarkable amount of waste. large dispersed processes can’t be seen all at once. When flow charting (or value stream mapping) a large process, precise communication is key. The only way to be sure a chart is up to date is to review the process frequently.

The stand-in-a-circle exercise works everywhere. Take the time to understand reality before acting. it also counters the instinct of managers (and others) with a strong a bias for action who always want to be making something happen – even if it’s wrong. value stream mapping is a tool that needs to be used. here are some tips: • at a minimum, you need to re-do your value stream map annually.

• use “out-side eyes” so you can see the forest instead of the trees.

• a current state map without a “future state map” is a waste of time.

• opportunities identified during a mapping exercise can and should be quantified and developed within your operating plan.

• revisit your opportunities often to insure they’re being implemented.

With diminishing resources, organizations try to rush through mapping exercises, but you need to slow down and observe to go faster.

Richard Kunst is president and CEO of Cambridge, Ont.-based Kunst Solutions Corp., which publishes the “Lean Thoughts” e-newsletter and helps companies become more agile, develop evolutionary management and implement lean solutions.

Visit www.kunstsolutions.com. E-mail rkunst@ kunstartofsolutions.com.

Comments? E-mail jterrett@plant.ca.

Condensed from a Motordoc Newsletter by Dr. Howard W. Penrose, with permission.

Comments? E-mail jterrett@plant.ca.

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PLANT 15

13-01-30 10:51 AM

Sustainability

>> Environment

>> Green Manufacturing

Sustainable procurement

Forge a greener value chain

By Brett Wills

M

any manufacturers already have some form of procurement or purchasing policy in place, and it’s a natural next step to embed sustainability across your value chain. Here are four steps to move procurement in a more sustainable direction: Scope/boundary setting. Start with a general area and focus on the most commonly purchased items, such as office supplies, and expand from there.

Define sustainability attributes. Look at three general areas: economic (cost, quality and delivery); environmental (recycled content and recyclable at end of life); and social (working conditions, testing practices). Rank the top attributes and decide how many need to be satisfied to qualify as a sustainable purchase.

Policy documentation. Document the scope, boundary and items included in the policy, then document each of the sustainability attributes and guidelines needed to meet purchase guidelines.

Deployment and management. Train procurement staff on the policy and how to execute it. Develop metrics to measure performance. For example, measure the percentage of purchases that comply with the policy by meeting the required number of attributes. Set goals to increase the percentage over time and make staff accountable by providing rewards/repercussions.

Tie sustainability goals to the performance management system or make it part of the job description and performance review for procurement staff.

Canada declared an environmental laggard

we rank near the bottom of OECD nations

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Brett Wills is the director of the Green Enterprise Movement and a senior consultant with High Performance Solutions in Cambridge, Ont. E-mail bwills@hpsinc.ca.

Comments? E-mail jterrett@plant.ca.

>>

Canada emits higher levels per capita of nitrogen oxides, sulphur oxides, and volatile organic compounds.

PHOTO: THINKSTOCK

Conference Board of Canada report cites high consumption and throwaway habits for a C grade and 15th of 17 ranking.

A

huge landmass, economic dependence on resources and overconsumption have earned Canada a C from the Conference Board of Canada’s How Canada Performs – Environment ranking.

Of the 17 developed economies the Ottawa-based research firm evaluated, Canada checks in at 15th, ahead of the Australia and the US. The Conference Board says in addition to generating the most waste, Canadians’ water withdrawals are nearly double the average of the other countries and are lower only than the US. There is some improvement on the energy use side, but

Retrofit

Collecting dust

VDTs reduce energy use and noise levels in a Demix Construction asphalt plant

D

ust collection systems rely heavily on motor drives to make them efficient. As dust varies, so does the need for the motors providing the ventilation. One company found out that variable frequency drives (VFD) are well suited for this purpose and they reduce energy consumption as well as noise levels.

Demix Construction owns an asphalt production plant in Laval, Que. The 930-metre facility operates 12 hours daily for 129 days between May and November with a total energy consumption of around 3,500 of electricity and about 74,000 gigajoules in natural gas.

The company decided on a retrofit by installing a variable frequency drive on the ventilation motors driving the plant’s dust collection system. The VFD operates 60% to 80% of the time, depending on production demand, and saves about 450 gigawatt hours, or around $12,000 annually in electricity cost, with a payback period

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Canadians are still the largest users of energy in the developed world.

“Our large land mass, cold climate and resource-intensive economy make us less likely to rank highly on some indicators of

Indicators Nitrogen oxides emissions D Sulphur oxides emissions B VOC emissions D PM10 concentration B Municipal waste generation D Water Quality Index A Water withdrawals C Threatened species A Forest cover change B Use of forest resources A Marine Trophic Index D GHG emissions D Low-emitting electricity production A Energy intensity D

of between two to three years.

“It was easy to make the business case,” says Pierre Desrochers, plant superintendent at Demix. “What made the project feasible was the potential energy savings, the incentives provided by Natural Resources Canada’s eco-energy retrofit incentives for industry program and Hydro-Québec’s rate structure system.”

The VFD has been in operation since May 2010. Desrochers took amperage readings prior to the VFD installation to track consumption so that actual energy savings can be determined. He notes that the retrofit has also reduced the noise level in the plant.

Desrochers sees the VFD as the first of several energy efficiency projects that align with the company’s vision to reduce its greenhouse gas emissions and environmental footprint while reducing production costs.

Before the installation, fans linked to the dust collection system air outlets were in constant, full-speed operation to ensure air exchange during production. Now the VFD turns on the fans only at the required speed, usually between 40% and 90% of full speed – proof that retrofits can improve efficiency and save money. — Steve Gahbauer

environmental sustainability, but many of our poor results are based on inefficient use of resources,” said Len Coad, the Conference Board’s director of energy, environment and technology policy.

Canada, Australia and the US are the three largest countries in terms of land area, and the most resource-intensive economies in the Organisation for Economic Co-operation and Development.

The rankings do show some positive results for Canada. The Conference Board says forests are generally well protected and well managed; air quality has improved modestly; energy use per person is down; and water quality is still high.

Here are some highlights: • In 2009, Canada generated 777 kilograms of municipal waste per capita. The 17-country average was 578 kilograms.

Most of the waste goes to landfills or incinerators. Of the 34 million tonnes generated in 2008, 26 million went there for disposal.

• Greenhouse gas (GHG) emissions per capita in 2010 earned a D grade. Blame increased exports of natural resources, although greenhouse gas emissions per capita did fall by almost 5% between 1990 and 2010.

• Canada may be a big energy user, but energy intensity level decreased by almost 20% between 1990 and 2009. Canada’s share of electricity produced by nuclear and renewable sources (mostly hydroelectric power) also improved, increasing from 72% in 2000 to almost 78% in 2011.

• There was improvement of all four air quality indicators between 1990 and 2009, but Canada still emits higher levels per capita of nitrogen oxides, sulphur oxides, and volatile organic compounds (VOCs).

• Canada gets an A for water quality and ranks fourth among nations, but the Prairies, southern Ontario and southern Quebec have water quality concerns, due in part to municipal water discharges.

Water withdrawals are also nearly double the 16-country average, and Canadians use more than nine times the water per capita used by Danes.

• Canada gets an A and is second only to Japan on the use of forest resources, and earns a B for its change in forest cover between 2005 and 2010.

• The proportion of threatened species as a share of all species is good for an A, but the number of at-risk species is increasing, although federal biodiversity action plans have been prepared for the agriculture and forestry sectors. In contrast, the Marine Trophic Index declined between 2000 and 2006, which is a D performance.

Visit www.conferenceboard.ca for a copy of the report.

Comments? E-mail jterrett@plant.ca.

January/February 2013

13-02-06 7:54 AM

Process Improvement << Management

>> Human Resources

How to avoid merger meltdown Address employee issues before getting down to business

Protect the

BOTTOM LINE

BY MARK BORKOWSKI

HOW TO BUILD IT FASTER, BETTER, CHEAPER Business process improvement will make your company and supply chain more effective and efficient.

BY GLENN FRASER AND CAROLINE COPEMAN

D

emands often come fast and furious from multiple sources.

Consumers want new products. Retailers expect shorter product life cycles. Head office wants more processes to be automated. There are new safety regulations to meet.

Every manufacturer is under pressure to improve products, reduce time-to-market, and offer better pricing, making business process improvement (BPI) all the more essential to protecting the bottom line. Like its name, business process improvement, also known as business process enhancement/ modelling/optimization, is about making one or more processes within a company and its supply chain more effective and efficient.

BPI’s value comes from being proactive. Many companies today expend huge effort, time and expense addressing problems that arise each day. As a result, processes throughout the supply chain – from procurement, through production, to delivery – often fall out of alignment, and sometimes break down completely. Crisis mode ensues. Performance suffers.

Business process improvement focuses on achieving welldefined and designed processes that complete work more cost effectively, quickly and easily. Given their competitive significance, inventory and procurement are often the focus of improvement projects for manufacturers. Results typically include time and cost savings, improved quality, happier customers and higher profitability. One company, for example, used business process improvement to update a file management process, streamlining a six-employee department to one staff member, while producing faster, more accurate and complete reports.

Improving business Approaches to business process improvement will vary, but they will include the following steps: • Identify future vision and obstacles. Management needs to create a clear picture of the ideal future state and the obstacles in the way. What are the company’s goals, priorities and needs? In which area of the business is progress restricted by wasting money, time, resources or opportunities? What outcomes are expected from the improvement process?

• Define the scope of the project. Since processes are linked and changes to one affect others, it’s necessary to specify the parameters of the project. Target processes, start and end points and identify the stakeholders involved.

• Develop a case for change to ensure buy-in. This

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requires identifying the stakeholders who would be most impacted by the change and those who are most likely to resist.

Address the reasons why processes require improvement and the value this will deliver to the company and to these people.

• Map and assess the current state. This will help you fully understand each process and to establish a baseline for what’s working well and what isn’t. Identify the objectives for each process, inputs and outputs, the sequence of steps required to execute each process, the resources required to execute each step, the speed or effort expended to perform each one, and the decision points and options along the way.

Acquiring these details may involve reviewing documents, shadowing personnel as they perform processes, and by conducting interviews. Map the details and interrelationships then map in a pictorial representation of workflow and functions.

• Analyze gaps. Identify the barriers and success factors critical to reaching the desired future state. Where are the inefficiencies, bottlenecks, unused deliverables and repeated activities? Where are the opportunities? Where are best practices underutilized?

• Devise recommendations and prioritize. Base them on the company’s goals and needs. Urgency, probability of success, potential impact, financial value and available resources may influence what is implemented first.

• Develop an implementation plan. This plan, which may be phased in according to project priorities, sets out next steps including targets, required resources and metrics to measure progress.

• Assess progress. Once improvements are underway, they need to be tracked and measured against performance metrics to ensure they’re delivering the expected results.

While improvement initiatives can be unsettling, one success often leads to another. When a company succeeds with one project, business performance improvement often becomes addictive. Managers and employees alike crave the challenge of striving for goals, the triumph of meeting them and the resulting rewards.

How do you know if it’s time to begin improving your business processes? Change to policies, resources, products, technology, competitors, markets or performance is a catalyst.

When it becomes more cost effective to adapt than to hang onto the status quo, it’s time to act.

Glenn Fraser is the leader of the GTA region Food & Ag manufacturing practice of MNP LLP, a Calgary-based accounting and advisory firm. Caroline Copeman is a senior manager in the consulting practice. E-mail glenn.fraser@mnp.ca or caroline.copeman@mnp.ca. Visit www.mnp.ca.

PHOTO: THINKSTOCK

I

t’s natural to resist change until a decisive moment forces the issue. Indeed, the easiest time to change is during a crisis or a major event, such as a merger or acquisition, which can be overwhelming for employees and a problem for companies to manage.

Business consultant Susan Steinbrecher puts it this way: “There is usually a disproportionate amount of time and money spent on the financial due diligence…but numbers don’t make a merger work; people do.”

She offers three steps to effectively navigate through the transition.

Clash of the cultures. Most companies think two completely different company cultures will assimilate into one.

This can be a recipe for disaster. Leave the corporate ego at the door and share the best practices of both companies.

Communicate. Address the emotional aspect of the merger. Employees may have lost friends to downsizing or wonder if they’re next on the chopping block. Answer the difficult questions – even if you don’t have definitive answers. Make a commitment to get back to them with more details.

Explain what is happening and why in more personal, smaller groups. This will impart a sense of encouragement and support.

The four energy quadrants. Address the physical, mental, emotional and spiritual quadrants of energy needed to ensure everyone is operating at optimum capacity. Be alert to the following: • If you observe a physical deficit you will notice fatigue. Pay close attention to proper diet, sleep and exercise.

• An emotional deficit pertains to negative thoughts, which can be tackled through proper communication.

• A spiritual deficit shows up as lack of motivation and sense of purpose. By offering reassurance and encouragement you uphold employees’ resolve and enthusiasm.

When there is a mental energy deficit employees become distracted so involve them in decisions whenever possible and make sure they are clear on your expectations.

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Mark Borkowski is president of Torontobased Mercantile Mergers & Acquisitions Corp., which specializes in the sale of privately held companies. Visit mercantilemergersacquisitions.com. Susan Steinbrecher is CEO of Steinbrecher And Associates Inc. Her latest book is KENSHO: A Modern Awakening, Instigating Change in an Era of Global Renewal. Visit www.steinbrecher.com.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail jterrett@plant.ca.

PLANT 17

13-02-06 8:43 AM

Innovation

>> Biofuels

Agrisoma is developing a “drop-in” renewable fuel from mustard seeds for use in jetliners.

Brassica Carinata stores carbon as oil instead of starch, making it ideal for use as a renewable biofuel.

PHOTO: THINKSTOCK

BY MATT POWELL, ASSISTANT EDITOR

T

he world’s first civil jet flight powered by a 100% renewable drop-in biofuel has a Canadian connection.

On Oct. 29, a Falcon 20 jet operated by the National Research Council of Canada (NRC) took to the skies over Ottawa powered by a drop-in bio fuel manufactured from Agrisoma Biosciences Inc.’s Resonance Energy Feedstock, an oily byproduct that’s extracted from Brassica Carinata, or Ethiopian mustard.

These days, planes are already 70% more efficient than they were 40 years ago, but the International Civil Aviation Organization has outlined new industry emissions requirements, including a 50% reduction in global aerospace CO2 emissions by 2020.

As of July 2011, the Canadian federal government has also required diesel fuels to contain at least 2% renewable fuels, while the US has expanded its Renewable Fuels Standard (RFS2) to stipulate a minimum of 21 billion gallons of biofuel from non-food crops by 2022.

Bio-jet fuels from vegetable oils have also been approved by the ASTM International standard for up to 50% blend rates, which opens the door for producers to attack a market capacity of more than 58 billion gallons.

Data from October’s test-flight gathered by a T-33 aircraft tailing the NRC’s Falcon 20 proved the carinata-based fuel is cleaner and equally efficient as conventional aviation fuel, and there was a 50% reduction of aerosol emissions. Additional static engine tests showed a significant reduction in particles of up to 25% and up to 49% of black carbon emissions.

“It’s a liquid fuel, so it can go into almost anything,” says Steve Fabijanski, Agrisoma’s CEO. “But aviation fuel is one you can recognize. If you can make jet fuels greener, you can help change anything that goes into the atmosphere.”

The tests also revealed the biofuel’s engine performance is comparable to conventional fossil-based fuels, but achieved a 1.5% improvement in consumption.

Agrisoma, based in Ottawa, is an operating subsidiary of Vancouver-based Calyx Bio ventures, a technology company that owns a portfolio of patents related to modifying and engineering agricultural crop traits. Calyx has licensed its $25 million Engineered Trait Loci (ETL) technology to Agrisoma for the enhancement of carinata crops grown in southern Saskatchewan. The resulting Resonance feedstock is a member of the mustard oilseed crop family and was introduced into commercial production in 2012.

Calyx’s ETL technology is an advanced crop improvement technology that engineers new chromosome structures to carry unique combinations of traits within optimal genetic environments.

The technology allows desired traits to

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Bio fuel flies

HIGH

OIL FROM TINY SEEDS WILL CUT AEROSPACE EMISSIONS

be introduced into a specific crop chromosome in one cycle. Current introduction methods that require multiple cycles of randomly inserted traits.

Unlike more appetizing crops such as wheat and corn that store carbon as starch, carinata stores it as oil. A relative of canola – which also stores carbon as oil – carinata handles harsh growing conditions, making it ideal for the southern Saskatchewan prairies where Fabijanski notes growing conditions are often less than ideal.

“It’s a street fighter – it tolerates heat, plus insects and fungus don’t like it,” he says.

The Resonance crop used for the biojet fuel was grown in Kincaid, Sask. on 6,500 acres by 40 commercial growers during the summer of 2011. The crop, which is roughly 45% oil, yielded more than 500,000 gallons of product.

Fabijanski hopes crop walk-throughs with more than 500 farmers last year will boost acreage to more than 50,000 in 2013.

“We’ve got a lot of interest; there’s a ton of potential for 2013,” he says.

Taking flight The company has also signed a manufacturing agreement with Applied Research Associates (ARA), an international research and engineering company based in Albuquerque, NM, and Chevron Lummus Global (CLG), a 50-50 joint-venture between Chevron Products Co. and Lummus Technology Inc. Together, they’ve developed an integrated process called the Biofeuls ISOCONVERSION (BIC) process, which turns Agrisoma’s feedstock into a drop-in grade aerospace biofuel, known commercially as ReadiJet. BIC uses highly pressurized, super hot water to crack and cyclize plant or algal oils into lower molecular weight oil, similar to light sweet petroleum crude, without the sulphur, metals or other impurities typically found in petroleumbased alternatives.

The resulting crude contains oxygen in the form of organic acids. It’s removed

>> AUTO21 R&D

Creating cleaner diesel

Hydrogen fuels performance and emissions reductions

BY ANDRZEJ SOBIESIAK

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esearchers are looking at hydrogen as a possible replacement or supplement to liquid hydrocarbon fuels currently used in diesel engines. Adding it has the potential to make the combustion process more complete by modifying the chemical paths that lead to the formation of soot and lowering particulate matter.

One AUTO21 project focuses on delivering hydrogen directly into the reaction zone where soot and other pollutants are generated. The idea is hydrogen would act as a catalyst in the reaction mechanism of primary diesel fuel without creating a flammable mixture of hydrogen and air.

Hydrogen and diesel need to be injected simultaneously into the combustion zone and mixed together in the injection nozzle or at some other point in the fuelling system, but preferably in the high-pressure fuel pump.

Introduced in the optimal test location and at just the right time, hydro-

in a second step that uses CLG’s process to hydrotreat the crude into specification-quality drop-in jet and diesel fuels, tailored to meet commercial and military jet fuel applications.

“The fuel needs to be drop-in ready,” says Fabijanski. “There can’t be any changes to infrastructure, handling, engines or fuel systems.”

Extracting energy from natural sources is not a new concept, but commercializing a fuel that’s 100% renewable and drop-in ready to power massive jetliners certainly is.

“It’s not an oil you’d want to eat, but it’s got more carbon than you’d have in any food oil,” says Fabijanski. “You’re giving the guys making the fuel more carbon to work with, which is a positive.”

The feedstock is also providing Canada’s largest agricultural centre with a potentially lucrative economic boost.

Indeed, Fabijanski estimates a two million acre crop would generate more than $1 billion in new farmgate activities and another $1 billion in value added processing in Saskatchewan’s prairies. And a crop that big would generate more than 800 million litres of carinatta-based fuel.

“If you look at the amount of fuel burned here, Western Canada could become a green aviation hub,” he says.

The company has a close relationship with the NRC, having housed its research facilities at the NRC’s Plant Biotechnology Institute in Saskatoon since 2003.

And there’s funding from Sustainable Development Technology Canada (SDTC) to support growing the high yielding oilseed crops.

Fabijanski says the company and its partners are also working closely with aerospace firms and airlines to bring the biofuel to market.

“This is going to happen. People aren’t just kicking tires.”

Comments? E-mail mpowell@plant.ca.

gen will promote more complete combustion of the diesel fuel through several pathways. Converting more of the fuel into mechanical energy will achieve higher power output, reduce fuel consumption and regulate exhaust pollutants such as particulate matter and nitrous oxides.

The AUTO21 is working on two parallel research paths. The first involves finding the best way to deliver hydrogen into the combustion zone of the liquid fuel spray. The second focuses on laboratory engines and shock tube trials fuelled with two-phase diesel and hydrogen mixtures. Researchers plan to design an integrated co-injection nozzle and fuelling system for simultaneous delivery directly into cylinders of the compression ignition engine. Comprehensive engine trials will map brake performance when the two-phase mixture is used.

To meet regulatory emission requirements, today’s diesel engines are fitted with several exhaust after-treatment devices such as particulate matter filters and nitrous oxide regenerative traps. The emerging technology will relax demands on this equipment’s efficiency and contribute to a smooth transition from current power systems to future ones that are clean, efficient and fuel-flexible.

Andrzej Sobiesiak is a professor at the University of Windsor and a project leader for the AUTO21 Network of Centre of Excellence in Windsor, Ont. Visit www.auto21.ca.

Comments? E-mail jterrett@plant.ca.

January/February 2013

13-02-06 7:56 AM

Automation << Technology

>> Supplylines A NEW REP FOR CHARLES Charles Industries Ltd. has appointed Mississauga, Ont.’s True North Technology Inc. as a manufacturing representative for its line of enclosures for industrial communications applications in Canada.

True North will lead an expansion of Charles Industries’ product lines for customers in the oil and gas, mining, plastics, chemicals, forestry, pulp and paper, transit and integrated traffic systems industries.

LIGHTING CONTROL DEAL Lumenpulse Inc., a Montreal manufacturer of high performance, architectural LEDbased lighting, has signed an agreement with Lutron Electronics, a Coopersburg, Pa. manufacturer of lighting controls.

Lutron’s EcoSystem will be integrated across Lumenpulse’s product line.

The digitally addressable dimming ballasts and LED drivers, controls, and environmental sensors deliver energy savings from 40% to 70%.

Optimize your

FORKLIFT FLEETS PHOTO: THINKSTOCK

IDG BUYS COMMERCIAL

IWAREHOUSE BOOSTS PRODUCTIVITY Digital data collection gives industrial operators a real-time window into daily operations.

BY MATT POWELL, ASSISTANT EDITOR

C

apturing shop-floor data plays a critical role in identifying inefficiencies throughout enterprises, which leads the way to productivity improvements and a healthier bottom line.

Raymond Corp.’s iWarehouse fleet management system does the same thing for material handling. It collects and analyzes real-time data from the operation of forklift trucks used in warehouse and manufacturing operations.

Joe LaFergola, Raymond’s manager of business and information solutions for the manufacturer of forklifts based in Greene, NY, says the iWarehouse system streamlines traditional activities previously performed through analogue methods.

“There was a lot of discontinuity in the types of data that was being collected – data on specific trucks didn’t match data in the vehicle management system [VMS], which caused major issues and irregularities, such as a number of potential failure points.”

The system, accessible via a third-party web portal, generates reports and bench-

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marks the productivity of lift trucks and operators. iPort connects to forklifts through a single connector, replacing “octopus” designs that require up to 12 wires to make a connection. A single connection reduces the number of switches, contactors and external sensors required to collect shop floor data, reducing the number of potential failure points.

Measurable benefits “The data is sent digitally between the vehicle management system and the lift truck to ensure that data is always synchronized,” he says.

Since launching in 2009, the system has shown measurable benefits in time savings, lower maintenance and operating costs, incident prevention and fleet rightsizing. For example, so far, iWarehouse has achieved maintenance cost savings of up to 10% and it saves up to 15 minutes per truck by permitting operators to electronically complete and store pre-shift vehicle checklists. Analogue pre-shift checklists took up to 17 minutes.

LaFergola says an “annoying” set of

static questions also encouraged operators to pencil-whip the checklist, which can lead to maintenance and safety issues. “iWarehouse randomizes those questions digitally so they’re answered properly,” he says. “We’ve also cut filing times and the paper trail.”

And those reports are available in realtime should safety inspectors show up unexpectedly.

The company markets the system as an “electronic brain” that constantly monitors multiple functions and issues alert codes designed to simplify diagnostics and repairs. It collects data sent at onesecond intervals for monitoring. Managers with remote access set enterprisewide benchmarks to enhance a fleet’s productivity. The system consists of the following modules: • iAlert sends alert code notifications via e-mail to service technicians to identify maintenance actions and provide early indications for impending maintenance issues.

• iControl configures operator profiles based on skill level to limit acceleration and truck speed when the operator signs into use specific vehicles.

• iImpact sends notifications to man-

The Industrial Distribution Group (IDG) Inc. is acquiring Commercial Solutions Inc., an Edmonton-based distributor of bearings, power transmission equipment, and oilfield, industrial and safety products.

The $51.4 million deal brings together Commercial’s strength in Western Canada with IDG’s North American coverage.

IDG is a Belmont, NC supplier of MRO products and supply chain solutions.

SOFTWARE PORTFOLIO EXPANDED Siemens has expanded its portfolio of industry software with the $890 million acquisition of LMS International NV, based in Leuven, Belgium, a provider of test and mechatronic simulation for complex products.

“The mechatronic simulation will become more and more important for intelligent and competitive product development and production processes. With the acquisition of LMS, we ... can significantly boost the pace and power of our clients’ innovation,” said Siegfried Russwurm, CEO of Siemens’ Industry Sector.

VALVE PLANT FOR INDIA Valves manufacturer Velan Inc. in Montreal has a new $10 million plant in India.

Velan Valves India Pvt. Ltd., Velan’s wholly owned subsidiary in Coimbatore, Tamil Nadu, India, has opened a 100,000-square-foot facility that will begin producing small forged valves for the Indian market.

The company plans to expand into other products that cater specifically to the Indian energy and fertilizer markets.

Continued on page 20

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CIEN

Data maximizes under-used floor space

Test & Measurment

Continued from page 19

agers if a lift truck is involved in an impact.

• iVerify requires operators the review OHSA-mandated operator checklists before the lift truck will start.

• iMetrics tracks usage data for facility managers to determine if the truck is best suited for specific applications.

• iTrack produces reports on fleet data by truck, facility, region and company to give national managers access to shop floor data across a company’s entire supply chain.

• iBattery monitors battery condition and extends battery life.

The system also keeps people from driving around aimlessly by identifying whether a truck is travelling with or without a load thanks to a hydraulic sensor that monitors pressure on the forks.

“Managers are able to identify those employees who are the most efficient and who is on a specific vehicle, which makes operators increasingly accountable for their actions,” says LaFergola.

DO A QUICK PRESSURE CHECK

Check pressure status with just a glance using the PG10 digital gauge from Automation Products Group Inc. This IP65 rated indoor/outdoor gauge has a 5.5-in. display casing, full five-digit display with 0.68-in. characters, a 270-degree digital “dial” or radial bar graph that shows a user-selectable pressure range from 0 to 100%, and four large set-up buttons.

Standard features include tare, peak hold, and max-min readings, as well as user-selectable units of measure and an auto-off timer. Two solid-state relays or SPDT mechanical relay outputs Status at a glance.

Promising results So far, testing has proved the system boosts productivity by up to 5% and one Wisconsin-based company has cut lift truck impacts by 80%.

Raymond developed iWarehouse with two third-party VMS producers. Total Trax Inc. provides real-time vehicle, driver and inventory tracking technologies, and Shock Watch, a producer of indicators and conditionbased monitoring devices, contributed monitoring technologies necessary to identify forklift-related data.

Raymond developed software that accommodates new fields into a single package.

“Testing was done in-house in Greene, where we manufacture our lift trucks, so all new lift trucks are being outfitted with the iWarehouse system,” says LaFergola. “We’ve built a truck simulator in our lab to simulate data collection.”

LaFergola believes collecting data is about maximizing under-used floor space. “Companies need to ask themselves if they can get greater productivity out of the same footprint.”

Opening a real-time window on forklift operations will make better use of that footprint.

for basic to semi-advanced automation are optional.

The gauge operates within a 0 to 160 degree F range and is accurate by ±0.25%. Pressures range from vacuum to 500 psi, or 0 to 10,000 psi.

Outputs are 0-2 VDC for batterypowered units, 4-20 mA for loop-powered units, and 0-5 VDC for externally powered units.

Data logging provides local access to the latest 60 readings.

The Automation Products Group Inc. based in Logan, Utah supplies level and pressure sensing solutions for process control applications. www.apgsensors.com

STREAMLINE SURG PROTECTION TESTING

POCKET TESTER MONITORS PH/TEMPERATURE The pocket-sized WPH2 Waterproof pH testing pen from Dwyer Instruments Inc. monitors pH and temperature levels in industrial plants or on-the-go in field applications.

An easy to replace electrode option and a one-touch 3-point auto-calibration are included. Both pH and temperature appear on the large dual display, while the electrode and battery compartment caps are sealed to IP65 weatherproof rating.

Dwyer Instruments is a manufacturer of control and instrumentation products based in Michigan City, Ind. www.dwyer-inst.com www.plantmagazine.ca/rsc/ 2

Comments? E-mail mpowell@plant.ca.

To effectively protect equipment, operators must test surge protection devices regularly.

Weidmuller’s V-Test portable Test in seconds. unit streamlines testing with the Varitector VSPC pluggable surge protectors.

The instrumentation manufacturer says the hand-held, battery-driven unit takes seconds to perform the test, without disconnecting any wiring from the installed surge protection device.

Pluggable arrestors feature optional remote status, where the surge protector generates an alarm when the control system has not detected the condition. This works well with V-Test to confirm the condition of the arrester. Simply plug the arrester module into the the V-Test, enter the 10-digit item number via the keypad, observe the resulting “OK” or “NOT OK” display, and replace a failed arrester with a spare to get the system back in operation.

The Weidmuller Group, based in Richmond, Va., makes industrial instrumentation. www.weidmuller.com www.plantmagazine.ca/rsc/ 3

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January/February 2013

3/27/12 2:22 PM

13-01-28 1:13 PM

MEASURE FLOATING SIGNALS 16-mm measuring range.

06 SJ-301 IMPROVES SURFACE TESTING Mitutoyo Canada Inc. has improved the surface measurement capabilities of the SJ-301 with the SJ-310 portable surface roughness tester.

It comes with the same carrying case and includes a large colour LCD touch panel for high visibility, as well as the option to choose from one of 16 display languages.

The X-axis measuring range is 16 mm (5.6 mm with a transverse tracing drive unit), and the resolution of the detector is 360 µm.

Three drive units are available: standard, transverse tracing and retractable.

External ports include USB, Digimatic output, RS-232C port and footswitch.

Power is supplied from either a built-in Ni-MH rechargeable battery or an AC adapter. An optional SD memory card stores large amounts of measurement results and condition data and a high-speed, high-quality thermal printer built into the display unit prints approximately 1.5-times faster than the printer for the SJ-301.

Mitutoyo, based in Toronto, is a supplier of measurement and inspection instruments. www.mitutoyo.ca

Made in USA

Yokogawa’s Model 701927 high-speed differential probe for high-voltage floating signal measurements, uses the test and measurement manufacturer’s DLM2000 series of mixed-signal oscilloscopes and other instruments equipped with a probe interface.

The probe has a 3-dB bandwidth of direct current to 150 MHz, and measures differential or common-mode voltages up to ±1,400 V (DC plus AC peak) or 1,000 V RMS.

Series 7000

New!

High-voltage probing.

Compact dual pedestal hose reels

Triple tap receptacle

p Series L4000

Heavy duty power and light cord reels

Input attenuation ratio is switchable between 1/50 and 1/500.

A metre-long extension cable allows the probe to be used in thermostatic chambers and on large or hot devices while maintaining a 100 MHz bandwidth.

The Yokogawa Test & Measurement Division, a manufacturer of test and measurement instruments, is based in Newnan, Ga. www.tmi.yokogawa.com

www.plantmagazine.ca/rsc/ 4

Series DP5000 and DP7000

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MEASURES WITHOUT COATING REMOVAL

sures on thick or highly attenuating materials, such as cast metals, rubber and fibreglass. It handles a range of weather conditions and difficult inspection environments, and meets IP67 requirements.

An optional data logger provides internal storage capacity of inspecPart tion data equivalent to more than destruction 475,000 thickness readings, or not required.

20,000 waveforms in various file formats, while the MicroSD card slot provides additional storage.

Olympus NDT is a manufacturer of non-destructive testing instruments based in Waltham, Mass. www.olympus-ims.com

You don’t have to mess up a product part to get a thickness measurement with Olympus NDT’s handheld 45MG ultrasonic gauge.

It’s used for applications ranging from wall-thinning measurements of internally corroded pipes using dual element probes to very precise measurements of thin materials using single element transducers.

Optional Thru-Coat and Echo-to-Echo technologies measure thicknesses without removing paint and coatings, and timebased B-scan converts live thickness readings into cross-sectional drawings.

An optional single element high penetration feature mea-

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PLANT 21

13-01-28 1:13 PM

cieN

Checks package integrity.

SeNSor deTecTS oxygeN iN food/PAckAgiNg MOCON Inc. has added three accessories to its OpTech oxygen test system for food and pharmaceutical applications.

The technology uses an optical sensor that gives off light according to the amount of oxygen present in package headspace or dissolved oxygen in a liquid product.

The Minneapolis manufacturer of

package integrity instrumentation has included a portability kit for mobile testing away from the lab, the ability to test packages with very little headspace such as blisters and food packages, and an ImPULSE sensor that works with opaque materials and retort applications.

The lightweight, ergonomic reader is paired with a 9-in. tablet in a carrying case.

When the package is punctured with the needle attachment oxygen from inside the package is exposed to the sensor, which is sealed from the external environment.

A reading is then taken through the transparent “head” of the tack.

The OpTech system allows for measurements to be taken over time to determine the longer-term effects of oxygen in a package. www.mocon.com www.plantmagazine.ca/rsc/ 7

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active PCI board, so the emulator does not require a real-time operating system.

Sercos is a digital interface for communication between controls, drives, and decentralized peripheral devices. Sercos International is an association of users and manufacturers. www.sercos.com www.plantmagazine.ca/rsc/ 9

Automated switching between measurements.

DRIVES

cMM SySTeM ProbeS SurfAce fiNiSheS

Sk 200e driveS Add hP

Renishaw’s SFP1 probe for the REVO five-axis CMM measurement system inspects surface finishes within coordinate measurement routines.

With a range of 6.3 to 0.05 Ra, the SFP1 makes the CMM a “single platform” metrology system with automated switching between dimensional and surface finish measurement, generating analysis in a single report.

Its straight or cranked styli are selected via the measurement program control using the system’s modular rack system.

The C axis combined with the infinite positioning of the REVO head and choice of stylus holders allows the probe tip to be automatically oriented to any angle. This enables flexible access to component features. The straight stylus probe performs a measurement trace within a 10-mm diameter bore to a depth of 100 mm.

The skidded probe with a 2 µm (0.000079 in.) radius diamond stylus tip outputs Ra, RMS and raw data formats to the metrology application software via Renishaw’s UCCServer software, using the I++ DME protocol. The raw data is then presented to specialized surface analysis software for more detailed reporting. www.renishaw.com www.plantmagazine.ca/rsc/ 8

New TeST TooL for SercoS Test various network configurations with Sercos International’s MultiSlave Emulator. The interface supports the emulation of complete sercos networks and their connected slave devices.

A PC-based software tool supports the Windows XP and Windows 7 operating systems and is based on an active sercos PCI board from Automata GmbH & Co. KG. The hardware-related sercos functions and the driver software are embedded in a single FPGA device that’s part of the

NORD DriveSystems has extended its SK 200E line of decentralized drives for motor or wall mounting with a size 4 inverter that has a rated power output of 15 to 30 hp.

IP55 housing protects the self-cooling inverters from dust and water jets.

Standard functions include sensorless current vector control, an integrated brake chopper, a control module for an electromagnetic brake, and “Safe Torque Off” safety feature.

There’s a choice of control boxes or free NORDCON software for programming and operation. Common applications can be quickly selected via DIP switches.

Size 4 inverter.

An analogue input allows for variable speed adjustment of the pump drive, and if a pressure or flow sensor is connected to the second analogue input, the SK 200E actively and autonomously controls process values. During partial load operation, an integrated energy saving function kicks in. The new size 4 is a practical extension to the SK 200E family, applications that include locally transporting heavy loads in large conveyor systems.

Power electronics integrated in the motor or mounted nearby generate savings by making long shielded motor cables, output filters and chokes unnecessary.

NORD DriveSystems is a manufacturer of drives based in Germany with 60 international locations. Nord Gear Ltd. is based in Brampton, Ont. www.nord.com www.plantmagazine.ca/rsc/ 10

LEAN TOOLS PANeLS eASe TooL orgANizATioN Boost efficiency with Rousseau Metal Inc.’s 5S hybrid hanging system, a multi-functional panel set-up that keeps tool organized and workspaces tidy.

The system organizes items of different shapes and sizes on a single surface. Users can combine round hooks (for smaller items), “spike” hooks (for heavier items), while holders for cans and supports for plastic bins are available to maximize space.

Rousseau, a manufacturer of modular shelving and workstation systems based in St-Jean-Port, Que., says the easily customized panels prevent useless searching for potentially misplaced items and tools. www.rousseaumetal.com

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January/February 2013

13-01-28 8:24 AM

Products and Equipment << Technology SENSORS

Baumer, based in Frauenfeld, Swizerland, is a manufacturer of sensors for process automation. It has a Canadian office in Burlington, Ont. www.baumer.com www.plantmagazine.ca/rsc/ 13

PUMPS hANdLe NASTy fLuidS uP To 317 gPh

Absolute position feedback.

eNcoderS eMiT Low ouT-gASSiNg rATeS RESOLUTE UHV ultra-high vacuum encoders from Renishaw Inc. deliver absolute position feedback, sub-micron accuracy and resolutions to 1 Nm for both linear and rotary applications.

They’re made from clean vacuum-compatible materials and adhesives with low out-gassing rates. Based on proven clean residual gas analysis (RGA), they’re suitable for high performance, semiconductor and scientific applications that require vacuum compatibility to 10-10 Torr.

Switch it on and the ultra-high vacuum variant immediately determines position.

Instant commutation means axes are under control after power loss to eliminate unchecked movements or collisions, which is an advantage in applications such as wafer handling.

The encoders eliminate auxiliary 1 Vpp signals, provide higher noise immunity and detect data corruption.

A range of serial protocols include BiSS, FANUC, Mitsubishi and Panasonic.

Renishaw is a developer of measurement and motion control technologies based in Glouchestershire, UK. The company has a Canadian office in Mississauga, Ont. www.renishaw.com www.plantmagazine.ca/rsc/ 12

Bredel’s APEX optimized hose pumps dose, meter and transfer between 0.7 and 317 gph for tough industrial applications involving corrosive, viscous, shear-sensitive, gaseous, crystallizing fluids or fluids with a combination of these properties.

Models are three pumps in one, with a single pump body adjustable for three hose sizes (10, 15 and 20 mm) when production volumes rise.

HYDRAULICS Tie-rodS exTeNd cyLiNder Life

Improves The MH metric hydraulic tie-rod cylinders from Milwau- load holding. kee Cylinder deliver long, maintenance-free service life.

Pistons are made with cast iron rings and polyurethane U-cup seals offer reliable load holding. Rod and rod bearings are constructed with plated/polished high strength steel and bronze for a long seal and bearing life with low maintenance requirements. Medium carbon steel tie-rods with rolled threads extend cylinder life.

The cylinders are available in a range of sizes and configurations, including bore diameters of 25, 32, 40, 50, 63, 80, 100, 125, 160 and 200 mm with working pressures up to 210 bar.

Multiple mounting configurations are also available. Male or female threaded rod options are standard, and standard porting is BSPP for leak-free connections.

Custom options include internal stop tubes and cushions.

Milwaukee Cylinder is a supplier of hydraulic solutions for industrial applications based in Cudahy, Mich. www.milwaukeecylinder.com www.plantmagazine.ca/rsc/ 16

INSPECTION MAgNeTS booST MeTAL SePArATioN

Three pumps in one.

They handle pressures up to 116 psi and the flow boosted by a new generation of long-lasing hoses that also support repeatable accuracy when dosing additives. The continuous pumps speed of up to 100 rpm provides a wide capacity range.

The cast aluminum housing dissipates heat and maintenance requirements are light for extended up-time and process continuity.

Bredel is a brand of the Watson-Marlow Pump Group with US operations in Wilmington, Mass. www.wmpg.com

Remove nonferrous metallics from plastics, glass, and electronic scrap with Eriez’ ECS nonferrous metal separator.

Separators come in four rotor designs and uses permanent rare earth magnets to induce eddy currents into nonferrous metals. The ECS repels forces that separate non-metallics for further processing. Removal of nonferrous materials is selective to minimize product loss.

Rotors are made with Kevlar/ceramic

Removes nonferrous metalics.

tile surface shells and grease retainer chambers that are balanced to operate at 3,000 rpm.

Eriez is a manufacturer of magnetic, vibratory and inspection technologies based in Erie, Pa. www.eriez.com www.plantmagazine.ca/rsc/ 17

Uptime, all the time ®

SKINTOP cable glands can stop electrical failures before they stop your production lines.

www.plantmagazine.ca/rsc/ 14

MOTION CONTROL SLiP ANd STALL recovery

Replace inductive sensors.

LoNg SeNSor rANge deTecTS MAgNeTic fieLdS MFxM proximity switches from Baumer detect magnetic fields over distances up to 60 mm where the target is behind a wall of non-ferromagnetic metal, such as stainless steel or aluminum.

MFxMs replace inductive sensors where long distance influences the detection of magnetic fields. A large sensing range increases tolerance to compensate for objects subject to rocking motion.

Compact rectangular housings measuring 8 x 8 mm, or standard M8 are available.

www.plant.ca

22-23-PLNT.indd 23

A-BLQ-E computer controlled, belt-driven linear stages from Zaber are equipped with integrated stepper motors and controllers.

A built-in rotary encoder offers closed-loop operation with slip/stall recovery features, while requiring only 48 V of power.

Stages connect to the RS-232 port of any computer or they’re daisy-chained with up to 254 A or T-series devices per chain. Sixpin mini din cables interconnect between units in close proximity.

With travel lengths up to 2.1 m, and a maximum speed of 2.0 m/s, A-BLQ-E stages are suitable for rapid positioning over large distances. A high load capacity of up to 20 kg and torsional stiffness make them suitable for large payloads, while 10 µm repeatability allows the stages to be used for precise positioning.

Zaber Technologies is a manufacturer of motion control products based in Vancouver. www.zaber.com

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PLANT 23

13-01-28 8:24 AM

CIEN Machining CNCs cut at high speeds Hyundai WIA’s F750M and F960M large capacity CNC vertical machining centres for industrial molds and dies include 12,000 rpm built-in cartridge type spindles and ultra precision class angular bearings that provide high speed accel/decal for smooth machining at high rpms.

The F750M travels 61 in. X-axis, 29.5 in. Y-axis, 28.5 in. Z-axis. The F960M

Quiet, vibration resistant cutting.

travels 96.5 in. X-axis, 37.4 in. Y-axis, 33.5 in. Z-axis. The main spindle is quiet

Connectors PCB connectors are solder-free Harting’s Han-Fast Lock circuit board connector joins Han connectors and doesn’t require additional components or soldered connections, allowing PCB manufacturers to connect up to 60 A to a board that optimizes space, and reduces production and device costs.

The connectors create compact and flexible electrical contacts. The PCB has one drilled hole and a pad. The inner surface of the plated, drilled contact hole serves as the interface. The connector is simply inEasy plug-in. serted into the contact hole. Only one contact point is needed to make the connection. Maintenance is simple because contacts can be detached easily. The connector also supports SMD assembly of the PCB. The Harting Technology Group is a manufacturer of connectivity products headquartered in Germany. Harting Canada is based in Markham, Ont. www.harting.com www.plantmagazine.ca/rsc/ 20

and vibration resistant at high cutting speeds to stabilize machining and minimize thermal transmission, while a hydraulic tool lock system boosts the tool’s stability.

The standard Big Plus spindle system provides dual contact between the spindle face and the flange face, increasing tool rigidity, while reducing run out and boosting productivity of machining applications. Spindle motors are powered up to 25 hp with spindle torque rated at 893/732 Nm. Hyundai WIA, a division of Hyundai Motor Group, is headquartered in Seoul, South Korea and manufactures CNC machine centres, robots and other industrial machinery. www.hyundai-wiamachine.com www.plantmagazine.ca/rsc/ 18

Clamping screws optimize holding power.

Couplings

and aluminum, the couplings have a smooth bore to protect shafts and thinwall tubing. For high torque applications, they can incorporate keyways and accommodate different size shafts, and stepped bore sizes are offered in inch and metric dimensions. Heavy-duty and remachinable couplings are also available.

Stafford is a manufacturer of shaft collars and couplings based in North Reading, Mass. www.staffordmfg.com

Shaft couplings protect thinwall tubing Stafford Manufacturing Corp.’s rigid shaft couplings are now offered in one-, two-, and three-piece designs, with or without keyways, in sizes ranging from 1/8 in. to 4 in. in diameter. Multiple clamping screws optimize holding power to securely join all types of unsupported shafts, and are easy to remove for periodic maintenance and repair.

Machined from stainless steel, steel,

www.plantmagazine.ca/rsc/ 19

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January/February 2013

13-02-06 7:42 AM

Industrial Literature Reviews CIEN

>> Plantware Output as high as 500 mA per channel.

Transfer data fast Speed is of the essence when it comes to transferring data. With this in mind, the Industrial Automation Group of Advantech has a low-density isolated DAQ card that uses the PCI Express interface.

The PCIE-1730 has a much faster data transfer rate than standard PCI cards, up to 32 isolated channels, and does not require additional development software.

Its 32 low density isolated digital IO channels and 32 TTL channels make the card suitable for a range of applications. Digital output can be as high as 500 mA per channel to allow transmission of large amounts of data.

Since the PCI Express bus is similar to the standard PCI bus, the card can be configured using DAQNavi software.

There are a range of options for development of configurations and applications, including: Visual C++, Visual Basic, VB.NET, C#, Delphi, BCB, LabVIEW, QT and Java.

Also included is an integrated utility that provides configuration, function testing, documentation and practical coded examples.

Advantech Corp. is a Cincinnati-based manufacturer of automation tools. www.advantech.com/ea www.plantmagazine.ca/rsc/ 21

CAD/CAM software supports lathes Mastercam X7 for SolidWorks from CNC Software Inc. introduces new capabilities, including lathe support, workflow improvements and the new 3D HST Project toolpath.

Several toolpaths types.

Lathe support includes several types of toolpaths, including roughing for quickly removing large amounts of stocks; finishing for following the contour of chained geometry; grooving for machining indented or recessed areas; Dynamic Rough for hard materials; and Plunge Turn for ISCAR inserts.

Tool Manager provides a whole new way to organize and create tooling. It also integrates work material and cut parameter data to take advantage of a manufacturer’s cutting recommendations.

A new 3D HST Project Toolpath projects either geometry or a toolpath from an earlier operation onto surfaces.

There’s also an editor called Code Expert that supports the new MP.NET posting language, legacy MP, NC code and VB script. It includes completely configurable keyword highlighting, AutoComplete, prebuilt code snippets, outlining and bookmarks.

Its 5-axis Oscillating tool motion improves tool life by not always machining with the same area of the tool.

A Trim to Stock function automatically modifies a multiaxis toolpath to reduce air cutting, while backplot and verifying that utilities are in a single interface for more efficient workflow, better analysis tools and more comprehensive toolpath support.

CNC Software is a developer of Windows-based CAD/ CAM software for manufacturing based in Tolland, Conn. www.mastercamforsolidworks.com www.plantmagazine.ca/rsc/ 22

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The most popular versions are fully built and ready to ship.

When an unusual requirement turns up, they have the experience and manufacturing capacity to quickly modify or build a new fan. Free catalogue, includes N.R. Murphy's line of fans, specifications and guidelines. www.nrmurphy.com N.R. Murphy www.plantmagazine.ca/rsc/ 118

BRECOflex offers high precision polyurethane timing belts with a wide variety of backings. A heated chemical bonding process assures a strong seal. All backings provide excellent wear resistance and resilience. They come with a full range of accessories including pulleys, clamps, tensioners and slider beds. www.brecoflex BRECOflex www.plantmagazine.ca/rsc/ 121

MOST POPULAR VACUUM CUPS

Affordable Thermal Imaging

Vi-Cas Manufacturing’s new 16-page, full colour brochure details the company’s most popular vacuum cups.

In addition to dimensional information (including lip diameter, height and mounting holes), the new literature shows photos of each cup to guarantee accuracy. Vacuum cups and accessories are used extensively in all types of packaging and labeling operations. www.vi-cas.com Vi-Cas Manufacturing www.plantmagazine.ca/rsc/ 119

The FLIR i-Series Pointand-Shoot Thermal Imaging Cameras brochure introduces the newly redesigned i3, i5, and i7. The brochure covers affordable entry-level infrared cameras ideal for equipping front-line plant technicians. www.flir.ca Flir www.plantmagazine.ca/rsc/ 122

Raising the bars

CLAMPS, TOOLING COMPONENTS

Wireless Solutions’ affordable powerful ‘industrial strength’ cell phone booster systems ‘Raise Your Bars’ from 1 ‘bar’ to FULL ‘bars’. The system is specifically designed for warehouses, factories, logistic/ distribution centres, etc. Cell coverage of this industrial KIT is 60,000 sq. ft. for Bell, Rogers, Telus, Wind, & Mobilicity. www.wireless-solutions.ca Wireless Solutions www.plantmagazine.ca/rsc/ 120

Newly updated, this 688page catalogue, in print or online, features photos and specifications of clamps, pins, hoist rings, knobs, threaded inserts, spring-loaded devices, supports, locators, toggle clamps, modular fixturing, drill jigbushings and power workholding. www.carrlane.com Carr Lane Mfg. Co. www.plantmagazine.ca/rsc/ 123

Index of Advertisers RS#.................................................. Advertiser............................................................... Page #

124................................................. AME............................................................................. 26 107................................................. Design and Manufacturing Show..................................... 11 126................................................. Automation Direct...................................................... OBC 111, 125......................................... Carr lane............................................................... 21, IBC 109................................................. Creform........................................................................ 20 102................................................. Desjardins......................................................................6 103................................................. Exair..............................................................................7 104................................................. Flir Systems....................................................................8 106................................................. Hoffman....................................................................... 10 115................................................. Lapp............................................................................ 23 101................................................. Omega........................................................................ IFC 117................................................. Partners in Prevention................................................... 24 113................................................. Reelcraft...................................................................... 21 105................................................. SEW Eurodrive................................................................9 108................................................. SME - WMTS................................................................ 20 110................................................. SME - PMDS ................................................................ 21 116................................................. Vac-U-Max................................................................... 24 112................................................. Vi-Cas.......................................................................... 21 114................................................. Wengler....................................................................... 22 PLANT 25

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Departments

>> Postscript

Centre of gravity tilts toward Asia

BY JOCK FINLAYSON

T

Progress Energy) by firms based in China (CNOOC) and Malaysia (Petronas).

An unusual feature of these takeovers is that the acquiring firms are state-owned enterprises (SOEs), part of another trend that includes sovereign wealth funds, which is shaping the global investment landscape.

SOEs are increasingly well represented among the ranks of the largest global enterprises. Indeed, some 30% of the emerg-

ametoronto.org

he rise of China and other emerging economies in Asia, the Middle East, Latin America and Africa, is having a profound impact on the international economic and political order.

One area where they’re making a notable difference is the important sources of foreign direct investment (FDI) in the US and other advanced economies.

Canada is now on the receiving end of such FDI, as seen with two takeovers of Canadian energy companies (Nexen and

As the world’s centre of economic gravity tilts towards Asia, “Canada must consider how to position itself to benefit… ”

ing world’s biggest companies are SOEs. Sovereign wealth funds (SWFs), which are saving and investment vehicles created by governments, are another force to be reckoned with.

They’re among the world’s biggest pools of capital, boasting $5 trillion in assets under management, a figure expected to reach $10 trillion by 2020. Much of this is available to be invested in equities, bonds, real estate and infrastructure

assets in developed economies.

The state, through SOEs and SWFs, is a highly visible player in the international energy marketplace. For resource-rich countries such as Canada, they’re a significant source of capital, but also bring expertise and leadership in developing energy assets, related infrastructure and new markets.

For its part, the Harper government cleared the Nexen and Progress Energy sales based on what would be of “net benefit” to Canada. This is not a simple task.

It involves assessing the consequences of the investments by inquiring into matters such as the future growth of the Canadian operations, employment levels, procurement of Canadian-made goods and services, tax payments, the retention of head office functions, and national security. Because CNOOC and Petronas are state-owned, Ottawa also examined how they behave on a commercial basis and whether they adhere to appropriate corporate governance standards. Both passed Ottawa’s net benefit test.

Resource ownership

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It should be noted that a foreign takeover of a Canadian energy company doesn’t change the underlying ownership of the resources in question: the provinces retain ownership of the oil and gas, while the companies obtain the right to develop the resource.

As the world’s centre of economic gravity tilts towards Asia, Canada must consider how to position itself to benefit from this historic shift in global spending power. Given the country’s energy and broader resource endowments, and existing commercial ties with Pacific Rim markets, future prosperity will be affected by its success in cultivating and sustaining strong trade, investment and people-to-people connections with Asia.

At a minimum, Canada should seek to be part of the evolving institutional architecture of the Asia-Pacific region by participating in the Trans-Pacific Partnership negotiations and stepping up efforts to conclude trade and other commercial agreements with key Asian nations.

While the government has to ensure that the “net benefit” tests are met, it’s important Canada remains open to foreign investment.

As C.D. Howe Institute analyst Daniel Schwanen recently wrote, “If Canada wants to benefit from Asia’s long-term growth potential, there is no getting around the need to facilitate trade, investment and other exchanges with China . . . and with other economies where the state plays a determining role.”

Jock Finlayson is executive vice-president of the Business Council of British Columbia. This column is distributed

by Troy Media in Calgary. Visit www. troymedia.com.

With many thanks to our Patron/Cornerstone Sponsors and Collaborating Partners

Comments? E-mail jterrett@plant.ca. www.plantmagazine.ca/rsc/ 124

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26 PLANT

January/February 2013

13-01-29 1:36 PM

Advertisement

New Carr LockTM System Provides Fast Fixturing The new Carr LockTM System from Carr Lane allows accurately locating and clamping at the same time, with just the twist of a hex wrench, for mounting quick-change tooling on a subplate.

The new system consists of a clamp, a liner bushing and a receiver bushing. Carr Lock offers complete interchangeability with all components of the mounting

system previously offered by Carr Lane, but at a lower price.

Available from stock, Carr Lock can be ordered alone or in kits combined with mounting plates.

Carr Lane Mfg. Co. carrlane.com/carrlock

The new Carr LockTM system consists of a clamp, a liner bushing and a receiver bushing, and can be ordered alone or in kits combined with mounting plates.

TINY VISETM EDGE CLAMPS

Get strong clamping action in a mini size, with patented Tiny Vise edge clamps from Carr Lane.

Ideal for fixturing small parts, the unique clamps grip the side of a workpiece to keep the top clear for machining. Available in a wide range of sizes, in regular, double edge and v jaw versions, for clamping round workpieces.NG. Carr Lane Mfg. Co., www.carrlane.com.

TRUSTED TO MOVE THE MOST DANGEROUS MATERIALS IN THE WORLD

Carr Lane’s Swivel Hoist Rings CLAMP STRAPS

Carr Lane provides a huge assortment of clamp straps, including slotted-heel, tapped-heel, swivel-heel, double-end, drill-spot-heel and forged adjustable clamp straps. Options include optional stainless steel and aluminum alloy, and assemblies with nuts and knobs.

Carr Lane Mfg. Co., www.carrlane.com.

Carr Lane offers more hoist rings than any other manufacturer, with more than 20 different types, ranging from economical, low profile versions to heavy-duty, extra-large types with load capacities up to 113000 kg.

• Swivel hoist rings • Safety hoist rings • Pivoting hoist rings • Lifting eyes • Side-pull hoist rings

DRILL BUSHINGS

Carr Lane offers thousands of drill bushings, in metric and U.S. sizes, which exceed ANSI standards. Options include Template Bushings, Flat Milled Renewable Bushings, Gun Drill Bushings, Chip-Breaker Bushings, Directed-Coolant Bushings, Air-Feed Bushings, and Unilock Liners.

Carr Lane Mfg. Co., www.carrlane.com.

To learn more, visit our online catalogue at:

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www.plantmagazine.ca/rsc/ 125

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All Stainless Steel Pneumatic Cylinders - "F" Series The NITRA Pneumatics F-Series non-repairable round body stainless steel cylinders includes bore sizes from 3/4” to 2” and stroke lengths from 1/2" to 18" to meet a broad range of applications including washdown and corrosive environments.

All Stainless Steel Pneumatic Cylinders - "F" Series - start at: $66.00 (F12005DN) • Cylinder bore sizes from 3/4" to 2" • Air Cylinder stroke lengths from 1/2" to 18" • Double-acting cylinders • Three pneumatic cylinder mounting configurations Also available is the "A" series non-repairable cylinders, with stainless bodies and aluminum end caps. In bore sizes from 7/16" to 2", the "A" series starts at just $10.50.

More cylinder series also interchangeable with popular brands

Heavy Duty NFPA Tie Rod Pneumatic Cylinders - "D" Series - start at: $96.00 (D24010DT-M) • Cylinder bore sizes: 1-1/2", 2", 2-1/2", 3-1/4", 4" • Cylinder stroke lengths from 1" to 24" • Double-acting cylinders • Flange, pivot and clevis cylinder mount options available

Dual Rod Guided Pneumatic Cylinders - "E" Series - start at: $94.00 (E12M010MD-M) • 90 sizes available • Eight bore sizes from 12mm to 63mm • Cylinder stroke lengths from 10mm to 250mm • Double-acting cylinders Compact Pneumatic Cylinders - "C" Series - start at: $34.50 (C090025D) • Cylinder bore sizes from 9/16" to 3" • Cylinder stroke lengths from 1/4" to 4" • Double-acting mini air cylinders • Interchangeable with other mini actuator, flat cylinder or pancake cylinder brands Tubing and Hose

Fittings and Air Couplings

www.automationdirect.com/pneumatic-parts

www.automationdirect.com Go online or call to get complete information, request your free catalog, or place an order.

Also Available Solenoid Valves and Manifolds

Air Preparation

Digital Pressure Switches/Transmitters

1-800-633-0405 Solenoid Valve Cables

Pneumatic Air Blow Guns

Our shipping policies make it easier than ever to order direct from the U.S.!

Free standard shipping is available for orders totaling over $49 U.S. (except for orders which require LTL shipping, see Web site for details). Also, save on brokerage fees when shipping standard ground to Canada - you can choose to allow AutomationDirect to nominate a broker for your shipment for parts shipping via standard ground. This can save you big on brokerage fees. See Web site for details and restrictions -

www.automationdirect.com/canada

www.plantmagazine.ca/rsc/ 126

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